Australia Fines Telstra $12 Million for Misleading Internet Customers – Latest 3 October 2025 News

Australia Fines Telstra $12 Million for Misleading Customers on Internet Speeds

Australia’s Federal Court has imposed a hefty fine of AUD 18 million (around USD 12 million) on the country’s largest telecommunications company, Telstra, for misleading thousands of its customers. The ruling came after evidence proved that the company had deliberately reduced upload speeds for nearly 8,897 Belong customers without notifying them, thereby failing to deliver the promised services.

According to the Australian Competition and Consumer Commission (ACCC), between October and November 2020, Telstra’s subsidiary Belong had assured its broadband customers of 40 Mbps upload speeds. However, the company secretly downgraded those speeds to just 20 Mbps, while maintaining download speeds at 100 Mbps. This change was implemented without informing customers, violating Australian consumer protection laws.

The ACCC stated that this misconduct directly affected thousands of paying subscribers who were denied the service quality they were promised. In its ruling, the court highlighted that Telstra knowingly withheld accurate information and unlawfully transferred customers to downgraded plans that contradicted their original agreements.

In addition to the fine, the court has ordered Telstra to compensate affected customers. Under this order, the company will repay an average of AUD 15 per month to each impacted subscriber, totaling approximately AUD 2.3 million in customer refunds.

ACCC Chair Gina Cass-Gottlieb described the judgment as a landmark decision that reinforces the accountability of large corporations. She stressed that misleading customers undermines trust and disrupts market fairness, and warned that no company—no matter how big—would be allowed to act above consumer law.

Following the verdict, Telstra acknowledged the wrongdoing and issued an apology to its customers. The company claimed that the issue was caused by a system failure, but assured that it is implementing stricter compliance measures to prevent similar incidents in the future.

Industry analysts believe this case highlights the growing scrutiny of Australia’s competitive telecom market, where regulators are determined to ensure transparency and fairness. They argue that such legal actions will strengthen consumer confidence and deter other companies from adopting deceptive practices.

This ruling not only serves as a financial penalty for Telstra but also stands as a strong warning to all telecom providers. Any company found to be misleading customers or failing to deliver promised services could face severe financial and legal consequences.