ACCC takes ISP to court over 'unfair' contract terms

Takes Netspeed to federal court over contracts allegedly allowing the ISP to unilaterally alter the price of its services

The Australian Competition and Consumer Commission has announced it is taking Internet service provider Netspeed to court for alleged breaches of Australian Consumer Law.

The watchdog alleges that Netspeed, which is the trading name for ByteCard, incorporates a number of unfair terms in its contracts.

According to the ACCC these terms include enabling Netspeed to vary prices without giving a customer the right to end the contract, unfairly indemnify Netspeed from damages, and let the ISP unilaterally terminate contracts.

"This is the first time the ACCC has commenced legal proceedings based exclusively on the new unfair contract terms provisions of the Australian Consumer Law," ACCC head Rod Sims said.

A scheduling conference for the case will be held on 13 June in Melbourne.

In April the ACCC suffered an embarrassing after taking ISP TPG to court, with the federal court on appeal slashing the ISP's fine for misleading advertising from $2 million to $50,000. The ACCC was forced to cover 75 per cent of TPG's costs.

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More about Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionTPG Telecom

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