The Australian Communications and Media Authority (ACMA) has called for an improvement in the customer protection framework of the telecommunications industry. ACMA’s position has received support from communications minister Michelle Rowland, who intends to direct the authority to establish financial hardship support as an enforceable industry standard.
The industry body Communications Alliance is currently conducting a review of the Telecommunications Consumer Protection (TCP) code, and ACMA has expressed its views in a position paper presented to the alliance. The consultation process is expected to result in a new code by 2024.
ACMA’s paper highlights that consumers should have clear information about purchases and commitments, receive quality assistance, and expect prompt resolution of inquiries. It emphasizes that customers should have the freedom to choose their preferred payment method without being compelled to use specific channels like direct debit. The paper also stresses the need for providers to offer support to customers facing financial difficulties, while ensuring that vulnerable customers are treated fairly and provided with telecommunications services and devices suitable for their needs.
Nerida O’Loughlin, Chair of ACMA, expressed concerns that the current co-regulatory code falls short of meeting consumer expectations for an essential service. O’Loughlin welcomed the government’s endorsement of a financial hardship standard, noting that ACMA would act swiftly to implement the new rules for the benefit of affected consumers. She urged the industry to make significant progress in addressing these issues within the next six months. If the industry fails to do so, ACMA believes there is a strong case for direct regulation, which would grant the authority enforcement powers such as remedial directions, enforceable undertakings, and the ability to impose financial penalties through the Federal Court.
The Australian Communications Consumer Action Network (ACCAN) supported direct regulation in its submission to the alliance inquiry, aiming to address the challenges faced by vulnerable consumers. The Australian Competition and Consumer Commission (ACCC) also backed this stance, suggesting the exploration of alternative regulatory solutions such as telecommunications consumer protections in an industry standard or the introduction of a new service provider determination.