ACCC acts on NBN speed claims
INTERNET providers will have to advertise minimum download speeds NBN customers can expect at peak times or potentially face prosecution, under new guidelines set by the consumer watchdog.
The Australian Competition and Consumer Commission (ACCC) has moved to protect NBN customers from misleading broadband speed offers, paving the way for providers to be prosecuted for misleading claims, such as ads using “best-case-scenario” broadband speeds.
ACCC chairman Rod Sims said the guidelines would bring “enormous benefits”.
The guidelines, published yesterday, offer retailers standards for advertising speeds – including clearly identifying typical minimum speeds during the internet rush hours of 7pm and 11pm.
Mr Sims said advertising was “unacceptable” in the context of the forced migration to the NBN. The new standardised labels aim to give clarity about what speeds consumers have actually bought and offer a way to compare providers.
“It’s a game changer because the retail service providers will have to tell the truth,” Mr Sims said.
“With this guidance, if you buy a ‘basic evening speed’ plan you should generally not expect speeds much different to your pre-NBN experience. If you buy ‘standard evening speed’ or higher plans, you should expect certain minimum speeds in busy periods.”