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Telstra fined $10 million after charging thousands of customers

  • Telstra has been fined $10million for misleading customers over charges
  • Australia’s largest telco was fined by a Federal Court for the charges
  • Telstra profited from a billing service that charged customers without consent 

Telstra has been fined $10million for misleading customers over games and ringtones.

The telco has been fined by a Federal Court for making false or misleading representations after more than 100,000 customers were signed up for rigntones, games and other content.

The Australian Competition and Consumer Commission decided on the fine on Thursday after the court found Telstra had misled customers when it charged them for content they had unwittingly purchased.

Telstra has been fined $10million for misleading customers over games and ringtones

ACCC chairman Rod Sims said Telstra had generated $62million in revenue from 2.7million mobile accounts

ACCC chairman Rod Sims said Telstra had generated $62million in revenue from 2.7million mobile accounts

Tesltra, Australia’s largest telco, profited from a third party billing service that allegedly charged customers without their consent.

‘Telstra admitted that more than 100,000 customers may have been affected and has committed to offer refunds to these customers,’ the ACCC said.

The ACCC found Telstra did not inform customers they had set a Premium Direct Billing service as a default on their accounts in 2015 and 2016.

Telstra customers are being advised to check their accounts and ask for refunds if they have received unauthorised charges.

Telstra customers are being advised to check their accounts and ask for refunds if they have received unauthorised charges

Telstra customers are being advised to check their accounts and ask for refunds if they have received unauthorised charges

ACCC chairman Rod Sims said Telstra had generated $62million in revenue from 2.7million mobile accounts.

‘Telstra knew that the Premium Direct Billing service it operated led to large numbers of its customers being billed for purchases made without their knowledge or consent,’Mr Sims said.

‘Despite this, Telstra continued to bill customers, making substantial revenue from the service at the expense of customers.’ 

Tesltra, Australia's largest telco, profited from a third party billing service that allegedly charged customers without their consent

Tesltra, Australia’s largest telco, profited from a third party billing service that allegedly charged customers without their consent

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Read more at DailyMail.co.uk


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