March 26 (Reuters) - Australia’s competition watchdog said on Monday said it has started proceedings against Telstra Corp Ltd, alleging that the country’s biggest telecom company misrepresented its third-party billing service “Premium Direct Billing”.
“Telstra has admitted that it misled customers by charging them for digital content, such as games and ringtones, which they unknowingly purchased. Many Telstra customers paid for content they did not want, did not use, and had difficulty unsubscribing from,” Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims said.
Telstra has agreed to refund customers and would make joint submissions in court in relation to the imposition of penalties totalling A$10 million ($7.7 million), the ACCC said in a statement.
$1 = 1.2972 Australian dollars Reporting by Sumeet Gaikwad in Bengaluru; editing by Richard Pullin