Optus taken to court over 'misleading' unlimited broadband claims

The Australian Competition and Consumer Commission (ACCC) has begun legal proceedings in Sydney’s Federal court against Optus for allegedly misleading consumers over its 'unlimited' broadband offer.

As part of the Optus ‘think bigger’ and ‘Supersonic’ broadband promotions, Optus has advertised plans with large downloads. However, once the customer reaches a specified download quota, their speed is shaped to 64kbps (dialup speed).

The ACCC claims that Optus “did not sufficiently or clearly disclose, and in some cases did not disclose at all, these qualifications," breaching the 1974 Trade Practices Act.

The ACCC is seeking court orders, including declarations that Optus breached the Act, injunctions, including interlocutory injunctions, civil penalties, corrective advertising and costs.

The ACCC has previously alleged that Optus contravened the Trade Practices Act in television, radio and print advertisements that promoted 'unlimited' calls on its $70 prepaid Turbo Max mobile plan.

TPG has its own unlimited plan, and a range of other providers such as iiNet, Netspace, Internode and iPrimus have recently released one terabyte plans. However, there are no similar restrictions on these plans apart from download quota being split between peak and off peak.