Telstra repays $9.3m

No consent for billing

TELSTRA has refunded a total of $9.3 million to more than 72,000 mobile phone customers it billed without their knowledge or consent after action by the consumer watchdog.

Telstra has repaid the money to customers who were misled and charged extra through its Premium Direct Billing (PDB) service.

The PDB service let customers buy digital content from third-party developers that sell outside the usual app marketplaces such as Apple’s App Store or the Google Play store.

When buying products such as ringtones, games or digital goods, for example, companies are able to tack on the cost to the buyer’s phone bill.

The arrangement meant many consumers were often unaware of the true cost of what they were buying.

The refunds come after the Federal Court in April ordered the telecommunications giant to pay penalties of $10 million because it allegedly permitted and profited from a third-party billing service.

Australian Competition and Consumer Commission chair Rod Sims said the near $20 million paid by Telstra in refunds and penalties should serve as a warning to all providers not to mislead or deceive.

“We are pleased to see so many customers refunded by Telstra,” he said.

“It’s clear a large number were charged for content like ringtones and wallpapers that they did not want, did not use, and had difficulty unsubscribing from.”

The refunds were only made to customers who issued complaints or contacted the telco, and the ACCC said other misled customers should contact Telstra directly.

“The ACCC is also conducting a detailed investigation into the third party billing services of other carriers and further enforcement action may well follow,” Mr Sims said.

In early 2017, a survey commissioned by the Australian Communications Consumer Action Network (ACCAN), found 12 per cent of respondents had been hit with unexpected third-party charges through direct billing.