18 Jun 2010

Broadband refunds to be made to Telecom customers

6:56 pm on 18 June 2010

Telecom has agreed to refund about 1300 customers who may have been misled by a 2008 broadband promotion.

Telecom is to refund them a total of about $120,000 as part of a settlement with the Commerce Commission.

Telecom admitted it had breached the Fair Trading Act with a basic broadband plan, which was marketed using the phrase, "Get Telecom broadband at dial up prices".

The Commerce Commission says customers would have paid more than they would on dial-up over the term of the contract, with also less data available to them.

Telecom has also agreed to pay $75,000 to Consumer NZ to set up a new website for consumers to compare the prices of different telecommunications products.

This settlement is the last of a number of significant investigations involving Telecom, dating back to 2003.