Telstra submits to ACCC’s penalty for misleading mobile direct-billing service

technicalstudio | March 25, 2018 | 0 | Mobiles

Telstra’s controversial Premium Direct Billing (PDB) service will cost the company upwards of $10 million dollars in penalties from the ACCC, on top of refunds to affected customers that were misled by the service, according to a new statement from the Australian telco.

The PDB service allowed Telstra customers to purchase or subscribe to third-party services such as games, apps and videos and have their costs charged directly to their mobile bill. The PDB purchase process was intentionally simplified and didn’t require payment details or identity verification.

While intended as a feature that improved convenience for consumers, many users complained when they found themselves paying for products they didn’t intend to, or subscribed to services that they couldn’t exit from. Those complaints lead the ACCC to take the telco to court, with the end result being that Telstra has cancelled the service effective of March 3.

What to expect

Telstra claims it has already paid out $5 million worth of refunds to customers who’d complained about unwarranted PDB charges, and the ACCC estimates a further ‘several million dollars’ worth of refunds will be made.

The telco has promised to contact any additional customers it believes to have been affected.

This article was sourced fromTechRadar

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