Telcos were in breach of consumer protection laws, watchdog ACMA inquiry finds

An investigation by Australia’s communications watchdog has found telcos, including majors Vodafone and Optus, failed their customer obligations.

Australian Communications and Media Authority chair Nerida O'Loughlin.

Eight telcos have been found by the communications watchdog to have been in breach of consumer protection laws, after an investigation found they failed to provide some customers with the required days’ notice before restricting, suspending or disconnecting their services.

Australian Communications and Media Authority investigations into Exetel, MyRepublic, Optus, Southern Phone, Foxtel, SpinTel, Belong and Vodafone found that each telco, except for Vodafone, was found to have failed to provide customers the required ­notice, while three – SpinTel, Southern Phone and Foxtel – also failed to provide customers with information about their financial hardship policy in bill reminder notices.

Six telcos – Belong, Foxtel, MyRepublic, Southern Phone, SpinTel and Vodafone – failed to provide required information in restriction, suspension or disconnection notices that would help customers better understand their situation and take action.

ACMA chair Nerida O’Loughlin said protecting vulnerable telco customers, such as those experiencing financial hardship, was one of the regulator’s priorities for the coming year. Any further noncompliance could lead to significant consequences, with poten­tial penalties of up to $250,000 for failing to comply with an ACMA direction.

Telstra in May lifted the prices of its postpaid mobile plans by 7 per cent (about $4 a month), in line with inflation but slightly above analyst expectations, after it announced that prepaid customers would be hit with a 20 per cent price rise from July.

Optus this month notified customers that their plans would rise by between $4 and $5 on average.

“Limiting an essential service like phone and internet access has the potential to cause significant distress, making it difficult for people to access their work, education, health and banking services,” Ms O’Loughlin said.

“With the current cost-of-living pressures, I expect all telcos to take the utmost care with customers who are struggling with bills. Telcos need to lift their game to help their customers or face further regulation.”

Ms O’Loughlin last month said combating SMS scams and protecting telco customers experiencing financial hardship and domestic and family violence would be the top ­compliance priorities for the communications watchdog for the next 12 months.