Telstra has offered refunds to around 42,000 customers who experienced slow National Broadband Network (NBN) speeds.
The service provider admitted that it may have made false or misleading representations in its advertising, in breach of the Australian Consumer Law.
An analysis by the Australian Competition and Consumer Commission (ACCC) found that 26,497 people, or 56 per cent of the paying customers, were not getting the speeds that were promised by the NBN advertising, which claimed download speeds of up to 100 megabits per second (Mbps) and upload speeds of up to 40 Mbps.
“Our investigation revealed many of Telstra’s FTTN and FTTB customers could not receive the maximum speed of their plan,” said ACCC chairman Rod Sims.
Telstra will offer customers the opportunity to switch to another plan with refunds, or cancel their plans at no charge.
Sims said while he is happy the ACCC took the initiative to come forward and notify the consumer watchdog about the issue, it remains a problem industry-wide.
“It is an industry problem where consumers are often not getting the speeds they are paying for … We will continue to investigate other retail service providers selling broadband plans over the NBN and take enforcement action where appropriate.”