The Australian Communications and Media Authority (ACMA) has fined Telstra for repeated billing mistakes. The company has been fined over $3 million. Additionally, Telstra has been ordered to refund customers a total of over $21 million. Almost $17.7 million already processed and another $3.4 million due by year’s end.
The investigation revealed that thousands of Telstra customers, primarily small businesses, were overcharged for inactive internet services between April 2012 and August 2023. On average, these customers were incorrectly billed around $2,600.
Telstra Acknowledges Error and Takes Corrective Action
Telstra acknowledged the billing errors in an statement to iTnews. It attributes them to improper deactivation processes, particularly during customer migrations to the National Broadband Network (NBN). The company has since contacted affected customers, providing explanations and issuing refunds with interest.
To prevent future occurrences, Telstra has implemented new measures to ensure that only actively used services are billed. Additionally, the carrier will report back to ACMA within six months on the effectiveness of these new controls.
ACMA Expresses Frustration and Demands Improvement
The ACMA chair, Nerida O’Loughlin, expressed strong disapproval of Telstra’s recurring billing errors, stating that the authority has “lost patience” with the company. She emphasized that Telstra’s history of inaccurate billing is unacceptable.
This latest fine comes on the heels of previous penalties imposed on Telstra for similar billing issues. In 2020, the company was directed to refund over $2.5 million to 10,000 customers for mistaken charges spanning a 12-year period. In 2022, Telstra was again found to have overcharged more than 11,000 customers, leading to a further $1.7 million in refunds.
Overall, this incident highlights the ACMA’s growing concern regarding Telstra’s billing practices and emphasizes the need for significant and lasting improvements to ensure fair and accurate billing for all customers.
