Australian Competition and Consumer Commission v Optus Internet Pty Limited

In the Federal Court of Australia, the Australian Competition and Consumer Commission (ACCC) brought proceedings against Optus Internet Pty Limited, alleging that the latter had engaged in misleading or deceptive conduct in relation to the supply of telephone and internet services. Optus Internet admitted to sending communications to its customers asserting the right to cancel services and the necessity of acquiring National Broadband Network (NBN) based services from Optus Internet to maintain home telephone and internet services, despite not having these rights or obligations.

The court was tasked with determining whether the proposed declarations and orders, including pecuniary penalties totalling $1.5 million, were appropriate. The court considered the nature and extent of Optus Internet's conduct, the potential impact on consumers, and the effectiveness of the proposed remedies. Optus Internet had implemented a strategy to expedite the migration of its customers to NBN-based services, which included sending misleading communications. The court examined whether the proposed declarations accurately reflected Optus Internet's conduct and whether the penalties were commensurate with the seriousness of the breaches.

The court accepted the proposed declarations and orders, finding that Optus Internet's conduct constituted misleading or deceptive conduct under the Australian Consumer Law. The court determined that the proposed penalties were appropriate given the widespread nature of the misleading representations and the potential harm to consumers. The court also endorsed the implementation of an upgraded complaints handling system for NBN-related consumer complaints and ordered Optus Internet to report on its compliance with this requirement.

The court ordered Optus Internet to pay a pecuniary penalty of $1 million for the misleading representations about cancellation rights and $500,000 for the misleading statements about the necessity of acquiring NBN services. Additionally, Optus Internet was required to implement an improved complaints handling system for NBN-related issues and report on its compliance to specified individuals within the company. The court also ordered Optus Internet to pay the ACCC's costs of $75,000.