iiNet and Internode set to compensate customers over NBN claims

Posted: 20 March 2018 1:17 pm

More than 11,000 NBN customers will qualify for remedies after ACCC action.

The complexities of the national broadband rollout and the effective speeds that consumers can get on the fixed line portions of the network can easily lead to confusion. Retailers on the network are meant to keep things plain for consumers especially as it relates to the actual speeds they can hit.

2017 saw the ACCC take action against numerous big internet providers on exactly that score. First Telstra copped it for misleading around 42,000 customers about their NBN speeds. Optus was next in the ACCC's sights, with 8,700 FTTN customers misled, and then TPG, where some 8,000 customers weren't given enough information about the quality of their services.

The ACCC has announced that it's taken action against TPG sub-brands iiNet and Internode in relation to more than 11,000 customers across both internet providers who couldn't reach the speeds they were promised in their contracts.

"iiNet and Internode have admitted that between 2015 and mid-2017, they both likely engaged in misleading or deceptive conduct or made false or misleading representations by promoting and offering NBN plans with maximum speeds that could not be delivered," ACCC Commissioner Sarah Court said.

Across the two brands, around 8,000 iiNet customers and about 3,000 Internode customers are now eligible for remedies, which may include the ability to switch to a lower speed while receiving refunds, or exiting their plans without penalty and with refunds. The issue affected customers on the Fibre to the Node (FTTN) and Fibre to the Building (FTTB) services.

On the FTTN side, 7,621 customers on an iiNet 100/40 Mbps FTTN plan were unable to get their promised speeds, and 1,925 of those customers weren't even able to get speeds approaching the 50/20Mbps tier. For Internode customers, 1,720 customers on 100/40 Mbps FTTN plans couldn't get those speeds, with 479 unable to receive 50/20Mbps.

The ACCC notes that if you are in the affected group and want to shift to lower speed plans, it's worth realising that neither internet provider offers 25/5Mbps plans at this time, so if you were looking to drop down to that speed tier, you may need to consider exiting your contract and choosing a new NBN provider.

Need a new NBN plan? Compare different NBN plan offerings with our comparison engine.

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