Australian Competition and Consumer Commission v Optus Internet Pty Limited

Case

[2022] FCA 1397

11 November 2022


Details
AGLC Case Decision Date
Australian Competition and Consumer Commission v Optus Internet Pty Limited [2022] FCA 1397 [2022] FCA 1397 11 November 2022

CaseChat Overview and Summary

In the case of Australian Competition and Consumer Commission v Optus Internet Pty Limited, the Australian Competition and Consumer Commission (ACCC) sought relief against Optus Internet Pty Limited for misleading or deceptive conduct in relation to its internet broadband services. The ACCC alleged that Optus had made misleading representations to residential customers regarding the maximum attainable speed of their National Broadband Network (NBN) lines and their ability to support certain broadband plans. Optus admitted to contravening sections 18 and 29 of the Australian Consumer Law (ACL).

The court was required to determine the appropriate remedies for Optus’ misleading conduct. The legal issues included whether Optus' representations were misleading, the extent of the contraventions, and the appropriate penalties and redress measures. The court also had to consider the declarations and pecuniary penalties jointly proposed by the parties.

The court found that Optus had indeed engaged in misleading conduct by providing inaccurate information about the maximum speeds attainable by customers' NBN lines and the suitability of certain broadband plans. The court accepted the parties' joint proposals for declarations and pecuniary penalties. It ordered Optus to pay $13,500,000 in penalties and implement a consumer redress regime to compensate affected customers. Additionally, Optus was required to update and maintain its consumer compliance program for three years and contribute $100,000 towards the ACCC's costs.

These orders were made on 11 November 2022, reflecting the court's determination that the proposed remedies were appropriate to address the misleading conduct and to deter future occurrences.
Details

Areas of Law

  • Consumer Law

Legal Concepts

  • Misleading or Deceptive Conduct

  • Consumer Redress

  • Pecuniary Penalties

  • Compliance Program