Optus have received a penalty from the Federal Court of $1.5 million after misleading National Broadband Network customers.
Roughly 14,000 Optus customers were told that their access to internet services would be disconnected within 30 days unless they transitioned to an NBN plan.
Despite this, Optus’ contract doesn’t permit changes to internet connection within this timeframe.
This isn’t the first time Optus have been caught giving customers insufficient notice regarding their NBN options.
They have previously admitted to other misleading actions.
Australia’s second largest internet provider is also under the pump for alluding customers that Optus was the only option when signing up to NBN, while networks such as Telstra and iiNet also provide the service.
The Australian Competition and Consumer Commission chairman, Rod Sims commented on the overall false impressions of Optus, SBS reported.
He said that the provider should not make false statements which distort customers’ decision making.
“It is illegal for businesses to mislead their customers and create a false impression through their communications,” he said.
“Today’s penalty serves as a warning to all businesses that such behaviour will be met with ACCC action.”
Since the ACCC has been involved, Optus has paid $833,000 in compensation costs to more than 8700 affected customers due to their service disconnections.
The phone provider stated that upon discovering customer concerns, they suspended migration activations and immediately reconnected affected customers.