Telstra 'Free' Accessories Are Not so Free

First OzBargain (albeit forum) post, super impressed with the suggestions/tips when typing a title!

Am I the only OzBargainer getting sucked into the 'free' Telstra accessories upon purchase of a contract. Obviously they're not going out of their way to give you something for free but…

Take my current situation:
Approximately 22 months ago I signed up for a new iPhone on a plan at Telstra (I have been a customer for 18+ years)
As a 'thankyou' for being a loyal customer, the consultant 'threw in' a bunch of free accessories (screen protector, car charger etc. valued at $150 'Telstra dollars' = $30 everywhere else) but as told by the consultant: they're 'free' so can't complain

Obviously you are advised at this point, you'll see an accessory payment on your bill, but that amount will be credited, making it 'free' (example, $10 charge - $10 credit = $0 Accessory charge) and that's the end of that discussion.

Fast forward to now when I go to cancel the plan 2 months early to hear: you'll be charged an extra $10 per month x 2 months = $20 for the accessories.
Odd as I recall the sales assistant informing that they were a) 'free' for being a loyal Telstra customer and/or b) 'credited on your bill making it free'.
So that $10 charge is an ongoing charge, and even though the cost to Telstra is no different upon cancelling (as they're giving you an identical credit every month anyway) they'll charge you without the 'promised credit' nonetheless

So in actual fact, they're only 'free' if you stay contracted for 24 months. I understand this as a way Telstra are trying to keep you as a customer, essentially tying you in for another 24 months ('future loyalty') however I believe it's a misrepresentation of 'free' accessories.

You can't offer a "freebie" that, after the fact, has conditions you're not told about at point of sale.

My question is: Would a reasonable consumer, going into a Telstra store, buying a device and getting 'upsold' with 'free' accessories, know that these 'free' accessories are only free if you stick around for 24 months? Did I just get a dodgy salesperson, and you are usually told if you cancel your contract ahead of time you won't receive any credit?

Side note: this reminds me too much of the ANZ Barbara from Bank World here on YouTube… "Ahh yes, that was 'know' with a silent 'k' as in you may not know about the fees until the fees are charged"

Poll Options

  • 0
    Yes, they usually tell you you have to complete the contract to receive the accessories 'free'
  • 2
    No, I didn't know about this charge when cancelling the contract
  • 1
    Nothing is free (definitely not a true OzBargain-er if you have this mindset!)
  • 28
    You got sucked in (upsold) to the Telstra spider-web

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Comments

  • +1

    Optus does the same thing with the FREE Modem on wireless broadband plans, but it uses the same Pay $10/month less $10/month device credit. I am sure it is in the terms and conditions if you take a careful look, but dont expect them to read the 20 pages to you upon purchase.

    So it looks like everyone does it and all we can do now is be wiser in the future.

    • Ahhh common practice!
      I'm sure it's in the T&C somewhere.

      Funnily enough, the plan before this iPhone 22 months ago, I had 4 remaining accessory payments and they didn't bill me
      Must be a hit or miss I guess

      Very true

  • aaand there it is..
    in the CIS here: Go Mobile $70 Plan

    Issue obviously is, sales can't really call it a 'free' loyalty gift without telling you the 'free' part is conditional on your staying for 24 months

  • You don't usually get credit towards an 'ARO' so while the credit was free - it's tied to the contract.
    I didn't get any free ARO when I signed my contract - although there's usually different areas (in store, retention, new connect/ports etc) with different promotions.

    The Telstra 24x7 app and any consultant should give you an estimation of ETC for cancelling or upgrading your service.
    (I'm currently upgrading to S8 and have a payout figure of $479 so you should have been able to see or been told your cost to re contract/disconnect etc).

    • Yes, spoke to the online chat who informed of the additional $20 charge for the 'accessory' repayment.

      I understand the concept, but it's (well it was to me) misconstrued that it's a loyalty 'gift' with $0 cost, not an accessory contract.
      What wasn't presented is that it's only a freebie if you stay contracted for 24 months, if you cancel ahead of time, you get charged for the 'accessories' which were going to end up costing the equivalent of $0 anyway (after the completion of the contract)

      The guy on chat anyway said to go back to the store and make a complaint there that I wasn't informed that the 'loyalty bonus' wasn't in fact a bonus but moreso an accessory repayment contract.

  • Whole reason for cancellation early is the move of the services (11 down, only 2 to go!) to Optus anyway so won't have to put up with it (from Telstra, I'm sure Optus will do the same :P) all that much longer luckily!

    It's a shame there is no effort put into customer retention, I guess they're the biggest and the 'best' and don't need to bother! Even the online chat didn't seem to fussed when I said I was moving along to Optus.

    Thanks all for your input!

    • +1

      I had a Telstra rep tell me that I won't dare move my services away from Telstra, so why bother competitively negotiating? On a $200k / year account.

      • +1

        Did you move?

        • +1

          Of course. Other carriers competitively negotiated.

        • +1

          @airzone: lol did the Telstra guy ever contact you again?

        • @Slippery Fish: management probably read the transcript and fired the Telstra guy ha ha

      • What a joke!
        I'm sure one day there will be nobody left

  • +2

    tbh it's not the shittiest thing from telstra. Helps to read your contract :)

    • How right you are!

  • +2

    FREE usually comes with a commitment. Find out what the commitment is.

    • How true you are

  • I wrote a blog post about this two years ago, it has happened to many many people.

    Telstra Accessory Repayment Option Overcharging

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