TPG to compensate customers for slow NBN speeds

20 December 2017

TPG Internet Pty Ltd (TPG) will compensate nearly 8,000 of its customers who were misled about maximum speeds they could achieve on certain TPG NBN plans.

Between 1 September 2015 and 30 June 2017, TPG sold NBN broadband plans advertising a range of speeds, including the top 100/40 speed tier (download speeds of 100 Mbps and upload speeds of 40 Mbps).

TPG advertised its high-speed plan as “Seriously Fast Internet. Up to 100Mbps”.

TPG has admitted that by promoting and offering speed plans with maximum speeds that could not be delivered, it likely contravened the Australian Consumer Law (ACL) by engaging in misleading or deceptive conduct and making false or misleading representations.

“The technical limitations of NBN’s fibre to the node technology meant many TPG customers could not reach the advertised 100/40 speeds they paid for. Some couldn’t even get half those advertised speeds,” ACCC Chairman Rod Sims said.

“TPG charged customers higher prices for the promise of faster speeds, misleading many customers into paying a premium price for a service they could not get.”

“This is the third major internet provider we have taken action against in the past few weeks. Internet service providers must take responsibility to ensure that their customers get the promised speeds that they pay for.”

The conduct affected TPG customers who purchased TPG’s fibre-to-the node (FTTN) and fibre-to the-building (FTTB) NBN plans. For example:

  • 7,509 (62%) of 100/40 Mbps FTTN customers could not receive the speeds they purchased. Of those customers, 2,088 could not even receive 50/20 Mbps
  • 42 (4%) of 100/40 Mbps FTTB customers could not receive the speeds they purchased
  • 411 (2%) of 25/5 Mbps FTTN customers could not receive the speeds they purchased. 

TPG has provided a court-enforceable undertaking to the ACCC detailing the compensation it will provide. Affected customers can choose from options including moving to a lower tier speed plan with a refund, or exiting their plan without cost and receiving a refund. TPG customers entitled to a refund will receive between $10 and $30 for each month that they paid for their plan.   

TPG will contact affected consumers by 2 March 2018 by email or letter. TPG will tell affected consumers the maximum speed their connection can achieve and explain their compensation options.

The undertaking is available at TPG Internet Pty Ltd

Background

TPG no longer offers a 25/5 plan. Customers who want to move down to a 25/5 plan should consider choosing the option to exit their contract with TPG then moving to another provider who does offer this speed.

Actions against other internet providers include:

Release number: 
MR 250/17
ACCC Infocentre: 

Use this form to make a general enquiry.

Media enquiries: 
Media team - 1300 138 917