More than 11,000 NBN customers to be compensated

iiNet and Internode concede they likely misled their users.

  • ACCC finds iiNet and Internode likely misled customers
  • More than 11,000 will be offered compensation
  • This includes refunds, contract waivers and more

More than 11,000 iiNet and Internode customers will be compensated after an investigation found they were paying for NBN speeds they couldn't get.

These are the fourth and fifth enforceable undertakings secured by the Australian Competition and Consumer Commission (ACCC) in recent months, as the competition watchdog responds to a surge in complaints about the NBN.

The refunds and waivers come after the ACCC's investigation found 8000 iiNet customers and 3000 Internode customers were sold plans with speeds they couldn't technically receive from 2015 to mid-2017.

The two companies, both subsidiaries of TPG Telecom, conceded they likely engaged in conduct prohibited under Australian Consumer Law, says Sarah Court, commissioner at the ACCC.

"iiNet and Internode customers should carefully review any email or letter from their provider and choose a remedy as quickly as possible," she says.

"The options available to each customer depends on their plan, but many can move to a lower speed plan and receive a refund, or exit their plan without cost."

Of iiNet's 11,900 customers, 64% couldn't receive the 100/40 Mbps FTTN speeds they were sold. And 1720 of them couldn't even achieve speeds on the lower 50/20 Mbps plan.

For Internode, 34% of its 5060 customers couldn't reach the peak 100/40 Mbps speeds of their plans, while more than a quarter of these customers couldn't reach speeds half as fast.

iiNet and Internode's undertakings join those secured by the ACCC from Telstra, TPG and Optus. Combined, the number of customers sold plans with speeds they couldn't achieve now totals 69,000.

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