19 Oct 2011

Telecom admits it misled customers over broadband data

2:42 pm on 19 October 2011

Telecom has admitted breaching the Fair Trading Act by misleading 97,000 customers about the amount of broadband data they used.

After complaints from customers, Telecom discovered a software fault in its broadband data usage meters, which meant 97,000 users were given inaccurate readings between November 2010 and June this year.

Telecom says it has already written to affected customers and has refunded more than $2.7 million.

The Commerce Commission says Telecom's admission of a breach of the Fair Trading Act and compensation for customers is the best possible outcome and avoids potentially lengthy and costly court hearings.