On 9 November 2023, the Optus Network, one of Australia’s largest telecommunications providers, went down nationally. The impact of the network outage demonstrated how important connectivity is in our modern world, with many individuals and businesses experiencing frustration and inconvenience. We do not know what caused the network outage, whether it will happen again, or if other telecommunication providers could follow.
For many small businesses, the network outage had significant financial consequences. Accordingly, many business owners wish to understand their legal and financial options when network disruptions significantly impact their business. This article provides an overview of your rights as a consumer when faced with telecommunications network outages and the legal framework governing telecommunications service providers.
How Did Businesses Suffer During the Outage?
As one of the telecommunication giants, Optus has over 10 million customers across Australia. Customers range from individuals to businesses of varying sizes. For many small business owners, the outage likely affected their cash flow and incurred further administrative costs after the event.
For example, my local coffee shop’s EFTPOS machines did not work during the outage. Consequently, the shop had three options:
- accept only customers carrying cash;
- turn away customers until the EFTPOS machines worked; or
- operate on an honour system whereby customers provide their contact details so the business can seek payment at a later date.
Regardless of which option the coffee shop chose, they dealt with a substantial downturn in profits that day.
Understanding Your Rights
Optus enters into a contract with each of its customers. However, many customers neglect to read the fine print or understand their contractual rights. Therefore, the first place to start when considering your rights is reviewing your contract.
Most agreements include provisions for compensation or remedies in the event of service disruptions. This offers consumers a legal foundation to assert their rights. The agreement will also outline your termination rights.
If your contract does not offer express rights to compensation or termination, then you can rely on the Australian Consumer Law (ACL) protections.
Relying on the ACL, consumers may also have a right to claim compensation for the financial losses that they incurred as a result of the network outage. Financial losses may include:
- loss of business opportunities; or
- additional costs incurred due to the need for alternative communication methods.
This guide provides key information on how to manage a business dispute as quickly and cost-effectively as possible.
How Do I Claim Compensation?
If you or your business has incurred financial losses as a result of the network outage, you should claim compensation. However, when doing so, you must provide evidence to demonstrate the financial loss that was a direct result of the network outage.
For example, my local coffee shop might prepare a list of charges they could not recover from customers who did not abide by the ‘honour system’. Additionally, they may compare sales on the day of the outage to the day before or the same day the week prior.
Or, if you work from home and had to purchase alternative internet access so you could continue working, then ensure you retain this receipt.
Once you have collated the information in support of your claim for compensation, contact Optus. If you are not happy with their response, you can raise your complaint with the Telecommunications Industry Ombudsman (TIO) or seek legal advice.
Key Takeaways
It is important to understand your rights as a consumer. These rights may arise under your contract with Optus or through the Australian Consumer Law. For those impacted financially by the Optus Network Outage, you must collate your evidence and reach out to Optus. If you do not receive the outcome you think you are entitled to, seek legal advice or contact the Telecommunications Industry Ombudsman.
If you need help understanding your consumer rights or making a claim for compensation, our experienced dispute lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
The ACL is a comprehensive set of rules and regulations designed to protect consumers and ensure fair trading practices in Australia. It is a part of the Competition and Consumer Act 2010 and is applicable nationally. The ACL provides consumers with certain rights and protections when purchasing goods and services, including guarantees regarding the quality and performance of products, as well as regulating various aspects of consumer transactions.
Consumer guarantees are a set of assurances provided by the ACL regarding the quality, safety, and performance of goods and services. These guarantees include that the product must be safe, durable, and free from defects. Furthermore, the product must be suitable for the purpose it was sold. Lastly, the product must match its description or the sample shown.
These guarantees apply to both goods and services and cannot be excluded by businesses in contracts. If a product or service does not meet these guarantees, consumers have the right to seek remedies, such as repairs, replacements, or refunds.
If you think that consumer guarantees have been breached, you can take the following steps:
+ Contact the seller or service provider to request a repair, replacement, or refund.
+ Complain to the ACCC for investigation.
+ If the issue remains unresolved, consumers can consider mediation services or, in some cases, legal action through the relevant tribunals or courts.
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