Telcos failing consumers, face regulation

The Australian Communications and Media Authority has told a Communications Alliance consultation that the industry needs to improve its customer protection framework.

ACMA's position is backed by communications minister Michelle Rowland, who said she would direct the authority to make financial hardship support an enforceable industry standard.

The alliance is currently reviewing the Telecommunications Consumer Protection (TCP) code, and ACMA has made its comments in a position paper [pdf] presented to the alliance.

The consultation is expected to produce a new code by 2024.

The ACMA paper said consumers should expect “clarity about purchases and commitment; quality of assistance; and that providers resolve inquiries 'in a reasonable time'".

Customers should have a choice about how they pay their bills without being forced onto particular channels, like direct debit; providers should offer help for customers in difficulty; and vulnerable customers should receive fair treatment “that enables them to select and maintain telecommunications services and devices that are suited to their needs,” the position paper states.

ACMA chair Nerida O’Loughlin said the authority "has been concerned for some time that the current co-regulatory code is not delivering the level of consumer safeguards expected of an essential service."

“Our position paper shows that telcos are falling short of what customers want in key areas such as selling practices, credit assessments, payment methods, disconnection processes, financial hardship assistance and the treatment of consumers in vulnerable circumstances, including those experiencing domestic and family violence," O'Loughlin said.

O’Loughlin welcomed the government’s support for a financial hardship standard.

“Given the current impact of cost-of-living pressures we will move quickly to implement the new rules to give early and stronger protection for these consumers,” she said.

“Telco improvements on other matters raised in our position paper are also urgent and cannot wait until the proposed TCP Code review end date of late 2024.

“We expect the industry to demonstrate significant progress towards addressing these issues in the next six months.

"If the industry is unwilling to do so, we believe there is compelling evidence to support moving these protections into direct regulation.”

Direct regulation would give ACMA enforcement tools such as remedial directions, enforceable undertakings, and financial penalties set by the Federal Court.

In its submission to the alliance inquiry [pdf], the Australian Communications Consumer Action Network (ACCAN) supports direct regulation of the industry “to address the problems that vulnerable consumers face”.

The Australian Competition and Consumer Commission agreed [pdf], saying it "would support the exploration of other regulatory solutions."

"These could include setting out telecommunications consumer protections in an industry standard, or through the introduction of a new service provider determination”, its submission states.