Optus forced to pay customers

ONE of Australia’s largest telcos will be forced to compensate 45,000 customers after the consumer watchdog found it had short-changed them on prepaid services over two years.

Optus must now track down and contact affected customers, offering up to $50 in refunds or additional services to make up for cutting their services without warning.

The Australian Competition and Consumer Commission found Optus reduced allowances for downloads, calls and text messages, and the expiry dates for some prepaid services on three occasions without telling customers.

The cutbacks affected Optus users who purchased smartphones and mobile modems, including devices from Samsung, Sony, LG, and Huawei.

In one case, a data allowance was more than halved — cut from 5GB that could be used over 30 days to just 2GB over 14 days.

Another data plan was cut from 186 days of use to just 30 days before a new purchase was required. An Optus spokeswoman said the changes did not affect all of its prepaid services and the company would contact affected customers about compensation.

“Customers who purchased specific prepaid products between August 2013 and June 2016 may not have received all the benefits offered and/or received a shorter expiry period than was advertised at the time of their purchase,” she said.

ACCC Commissioner Sarah Court said the court-enforceable undertaking could serve as a warning to other phone carriers to ensure customers get what they pay for.

“Mobile providers must provide the ‘value’ and benefits they advertise,” she said.

“Businesses must act swiftly to offer consumer redress and meet their obligations under Australian Consumer Law.”

The Optus spokeswoman said affected customers would receive a text message or email about receiving a credit or refund, though they could also contact Optus on 1300 732 515.