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Optus repaying Australian businesses $800k after decade of errors

Catie McLeodNCA NewsWire
Optus is repaying hundreds of small and medium sized businesses after incorrectly charging them for landline services they had cancelled, switching to other providers. Supplied
Camera IconOptus is repaying hundreds of small and medium sized businesses after incorrectly charging them for landline services they had cancelled, switching to other providers. Supplied Credit: Supplied

Optus will repay hundreds of businesses a total of almost $800,000 after spending the past decade charging them for landline services they no longer had.

An investigation by Australia’s communications watchdog found Optus continued to charge 994 small and medium sized businesses after they had transferred their service to other providers, in breach of billing rules.

Australian Communications and Media Authority chair Nerida O’Loughlin said it was “alarming and unacceptable” that a “fundamental flaw” went undetected in Optus’ systems for so long.

The errors occurred between February 2011 and March 2021, which is when ACMA says Optus self-reported the matter and independently committed to issuing refunds.

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ACMA said Optus advised that the issue occurred due to incorrect billing end-dates being entered into its system for customers transferring to other telcos.

“Errors like these by Optus can have a big impact on small business. Fifteen of these customers were charged more than $10,000 which can be a huge amount for a small business to lose,” Ms O’Loughlin said.

TELCO FEES
Camera IconOptus is repaying hundreds of small and medium-sized businesses after charging them for landline services they had cancelled. NCA NewsWire/David Mariuz Credit: News Corp Australia

“Optus is the second largest telecommunications company in Australia and should have systems in place to ensure it complies with all relevant regulation.

“We are closely monitoring Optus to ensure it refunds all affected customers and takes action to reduce the risk of future billing errors.”

Under the Telecommunications Consumer Protections (TCP) Code, telcos must be able to demonstrate that charges on their bills are valid.

Following the investigation, ACMA says it has formally directed Optus to comply with the TCP Code or risk being slugged a penalty of up to $250,000 for noncompliance.

ACMA says Optus has contacted all affected customers and to date repaid 98 per cent of the charges plus interest.

An Optus spokeswoman said the telco would continue to work with ACMA on its refunding program.

“Between February 2011 and March 2021, a small number of Optus Business customers were charged for landline services due to system billing error,” he said.

“Optus reported the matter to the ACMA along with our commitment to issue refunds.”

Originally published as Optus repaying Australian businesses $800k after decade of errors

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