Telstra, the largest telecommunications company in Australia, has been issued with a warning after the Australian Communications and Media Authority (ACMA) found the company had breached consumer protection rules by restricting or suspending the accounts of more than 5400 customers without giving them prior notice.
The investigation, which took place between May and July 2022, revealed that Telstra had taken action to limit the services of 5410 customers after they failed to pay their bills. As a result, the customers had their internet, phone or other services suspended or restricted, and were unable to access certain services that they were previously able to.
In a statement released by the ACMA, the regulator said that this action was in breach of the Telecommunications Consumer Protection (TCP) Code, which requires telcos to give their customers reasonable notice of their intention to suspend or restrict services.
Nerida O’Loughlin, Chair of ACMA, warned telcos to be particularly cautious when carrying out activities that could interfere with customers’ services.
“By cutting off people’s essential phone and internet services without warning, Telstra probably added extra strain to those who are already struggling to make ends meet in the face of rising living costs. These connections are necessary for many aspects of our lives – from employment and learning to banking, healthcare and socialisation,” Ms O’Loughlin said.
