Daily Management Review

Australian Telco Firm Penalized For Misleading Customers


Australian Telco Firm Penalized For Misleading Customers
Accused of misleading consumers, a penalty of 1.5-million-Australian dollar (1.14 million U.S. dollars) was ordered against the second largest telecommunications company of Australia by the Federal Court.
Between the period from late 2015 to early 2017 the Australian telecom company Optus had called up about 14,000 consumers and informed them that if they did not sign up to the National Broadband Network (NBN) within a period of 30 days, their internet service would be disconnected. This was tactic use by the company to boost profits and the company made4 about 750,000 Australian dollars (565,179 U.S. dollars) using this unethical and illegal tactic, said a statement from the Australian Competition and Consumer Commission (ACCC) about the incident.
The National Broadband Network (NBN) is a network facility that offers wholesale broadband access to telecommunications companies across Australia and is presently being built and operated by NBN Co. Ltd - which is a government-owned firm.
NBN Co. Ltd. had reportedly given incentives to Optus against the company getting more customers to the new service. Optus is the third largest NBN service provider in Australia.
"Optus pressured customers by misrepresenting the time period in which services could be disconnected," ACCC Chairman Rod Sims said in the statement. Sims noted that the telecommunication firm did not have any authority to cut off internet broadband service in the time frame that the company had told the customer about or the customers would breach the contract.
"Businesses should not make false representations which distort customers' decision making," Sims said.
"It is illegal for businesses to mislead their customers and create a false impression through their communications. Today's penalty serves as a warning to all businesses that such behaviour will be met with ACCC action."
Customers who had bene affected by the actions and misconduct of the telecom company had been paid 833,000 Australian dollars (627,700 U.S. dollars) as compensation since December 2017 when the investigation into the actions of the company had been started by the ACCC.

Science & Technology

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”