Telstra, an Australian telecommunications company, has been found to have breached consumer protection rules by restricting or suspending the services of 5410 customers last year due to non-payment without adequate notice.
The Australian Communications and Media Authority (ACMA) conducted an investigation and issued a formal warning to Telstra. As a result of the restrictions, affected customers were unable to make outbound calls except to emergency services or Telstra and some could not receive calls except from emergency services or Telstra. Under the telecommunications consumer protection code, telcos are required to provide at least five working days’ notice.
The ACMA has urged telcos to be aware of the current cost of living pressures on many Australians and emphasized that phone and internet services are essential. Customers facing financial hardship are encouraged to contact their service provider.
The ACMA is preparing to release a report on customer financial hardship in the telco sector. Telstra attributed the issue to customers for whom it did not have a valid email address, and thus, had to send notifications by post. Of the customers affected, 5245 had their services restricted, while 165 had their services suspended.
Telstra claimed that 4283 customers resumed their services automatically after taking action, such as paying their bill. However, more than 1000 customers remained restricted or suspended for a month, and 97 were referred to collections.
