Company or individual details
- NBN Co Limited86 136 533 741136 533 741
The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from NBN Co Limited (NBN Co) in relation to its conduct in sending disconnection communications to consumers on the TransACT VDSL2 Network in the Australian Capital Territory (ACT). Those communications described the upcoming availability of NBN services and advised that recipients’ existing phone and internet services would likely be disconnected and that they were likely to need to acquire NBN services to continue to have phone and internet services. This was false because in the ACT the TransACT VDSL2 Network will continue to operate alongside and in competition with the NBN.
The TransACT VDSL2 Network is an example of an alternative network which will not be switched off as part of the NBN rollout.
NBN Co admits that this conduct was likely to have been false or misleading and in contravention of sections 18, 29(1)(l) and 34 of the Australian Consumer Law (ACL) contained in Schedule 2 to the Competition and Consumer Act 2010 (Cth) (CCA).
To address the ACCC’s concerns about this conduct, NBN Co provided the ACCC with a section 87B undertaking that it will, among other things:
- not send or publish communications that represented to consumers that their existing phone and/or internet services will be disconnected when this is not the case;
- reimburse consumers for early contract termination costs, equipment costs or related costs such as postage if they want to switch back to the TransACT VDSL2 Network;
- send a corrective letter to each ACT premises where the TransACT VDSL2 Network is available and where NBN Co sent its disconnection letters;
- issue corrective notices via the Canberra Times in its print and digital newspapers and through Facebook paid advertising, at its own expense, and publish a corrective notice on the NBN Co website;
- ensure that new disconnection communications being sent to areas where NBN Co knows there is an alternative network, includes a statement identifying the existence of any relevant alternative networks;
- maintain a list on its website of alternative networks that will continue to operate after the NBN rollout has been completed, and add further details as they are provided by alternative network owners/operators;
- pay the TPG Group, which owns the TransACT Network, at least $20,000 for its costs associated with correcting NBN Co’s disconnection communications;
- reimburse other alternative networks for incurred costs associated with correcting communications sent by NBN Co to customers of those alternative networks which may convey the impression that those customers had a need to migrate to the NBN;
- establish and implement a Competition and Consumer Compliance Program; and
- report to the ACCC stating the measures taken in compliance with the undertaking.