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ACCC to sue Dodo and iPrimus for misleading internet speed claims

ACCC to sue Dodo and iPrimus for misleading internet speed claims
ACCC to sue Dodo and iPrimus for misleading internet speed claims

The Australian Competition and Consumer Commission has reportedly alleged internet providers iPrimus and Dodo for making false claims regarding internet speeds that customers could obtain upon subscription to an NBN broadband service. ACCC has alleged this misleading activity by these Vocus Group’s internet providers for the duration between March 2018 and April 2019.

As per sources, Vocus Group had been previously charged by ACCC for false claims regarding internet speeds and video streaming quality. The previous year, Dodo had agreed to refund nearly $360,000 to around 16,000 customers over misleading claims with respect to its entry level NBN broadband plans. ACCC had stated that the testing methodology utilized by Dodo and iPrimus was inconsistent with its Broadband Speed Claims Guidance as the company did not maintain a randomly selected compatible test sample over the test period.

Expressing his opinion over the current allegations, Rod Sims, the Chairman of ACCC, has stated that the Commission believes that many NBN customers would not have regularly received the advertised speeds during the busy evening period from 7.00 pm to 11.00 pm. He has further stated that Dodo and iPrimus have been using a fundamentally inaccurate testing methodology built by Vocus Group which is not a reasonable basis for their advertising claims regarding certain typical evening speeds.

Further, ACCC’s Measuring Broadband Australia Program has depicted that, since February 2019, the broadband speeds offered by Dodo and iPrimus have been consistently showing a lower performance amongst the nine NBN providers under examination.

According to a Vocus spokesman, the Group was really disappointed over ACCC’s decision to initiate proceedings against Dodo and iPrimus. He has stated that both the internet providers have been involved in discussions with the competition watchdog and have fully cooperated throughout the course of the investigation. The company is currently analyzing ACCC’s claims and will not be providing any further comment as the issue is before courts, added the spokesman.

 

Source Credits:

https://www.abc.net.au/news/2020-06-23/accc-sues-dodo-and-iprimus-for-allegedly-misleading-internet-sp/12383950