Telstra Group Limited Rotten Score Breakdown

In May 2021, the Federal Court ordered Telstra to pay A$50 million for unconscionable conduct involving sales of mobile contracts to Indigenous consumers. Telstra admitted that between January 2016 and August 2018, staff at five licensed Telstra-branded stores signed 108 Indigenous consumers to multiple post-paid mobile contracts that many did not understand or could not afford. The ACCC said conduct included manipulating credit assessments, falsely representing some products as free, and exploiting social, language, literacy and cultural vulnerabilities. Telstra admitted liability, waived debts, refunded affected consumers and agreed to additional compliance and remediation measures. Source: Australian Competition and Consumer Commission https://www.accc.gov.au/media-release/telstra-to-pay-50m-penalty-for-unconscionable-sales-to-indigenous-consumers

In November 2022, the Federal Court ordered Telstra Corporation to pay A$15 million for false or misleading representations concerning NBN broadband plans. Telstra admitted that it told customers it would test whether their connections could achieve the maximum speeds of certain NBN50 and NBN100 plans, inform customers when those speeds could not be reached and offer appropriate remedies. The ACCC said Telstra lacked adequate systems and processes to ensure these promises were fulfilled. The misleading representations were made during 2019 and/or 2020. Telstra was one of three major providers penalised in the proceeding, with total penalties of A$33.5 million. Source: Australian Competition and Consumer Commission https://www.accc.gov.au/media-release/telcos-to-pay-a-total-of-335-million-for-misleading-statements-about-nbn-maximum-speeds