Telstra allegedly engaged in conduct that violated sections 18 and 29(1)(g) of the ACL
The Federal Court has ordered Telstra Limited to pay an $18m penalty after finding the company contravened key provisions of the Australian Consumer Law.
Justice Snaden delivered the judgment in Australian Competition and Consumer Commission v Telstra Limited (No 2) [2025] FCA 1220 on 3 October 2025, following a bifurcated proceeding in which liability had already been established in a previous decision, Australian Competition and Consumer Commission v Telstra Limited [2025] FCA 93. The Australian Competition and Consumer Commission (ACCC) brought the case, alleging Telstra engaged in conduct that breached sections 18 and 29(1)(g) of the ACL, which address misleading or deceptive conduct and false or misleading representations.
The court accepted that Telstra had engaged in the contravening conduct, as outlined in the earlier liability judgment. The subsequent hearing focused on the appropriate relief, with both parties submitting joint proposed orders, a statement of agreed facts, and a joint outline of submissions. The proposals included a pecuniary penalty of $18m and an award of $300,000 in costs to the ACCC.
Justice Snaden declined to grant declaratory relief, stating, “The binding declarations of right that have been proposed in this case say nothing about the court’s disapproval of the respondent’s unlawful conduct; and certainly nothing that won’t be said much more effectively via the imposition of the significant pecuniary penalty to which I shall shortly turn.” He found no evidence that declaratory relief would serve a practical purpose beyond the penalty already imposed.
In determining the penalty, the court considered the nature and extent of Telstra’s conduct, the number of affected customers, the period over which the conduct occurred, and the company’s remedial steps. The judgment noted, “A penalty of $18 million represents approximately $2,000 for each affected customer in respect of whom Telstra anticipated savings of $7 per month from the Speed Tier Switch. The total remediation that Telstra has or will pay to customers is additional to the penalty and exceeds $2.3 million.”
Justice Snaden concluded, “I have no hesitation in accepting that the total amount that the parties jointly propose by way of pecuniary penalty is within what can properly be described as appropriate and should, for that reason, be endorsed.”
The decision reflects the Federal Court’s approach to regulatory enforcement and the role of penalties in addressing contraventions of Australian consumer law.
