The Australian Communications and Media Authority (ACMA) has approved new rules strengthening the rights of consumers dealing with Australia’s telecommunications companies (telcos).
ACMA said the new rules mean consumers will be better protected from financially over-committing themselves and from poor sales practices.
Chair of ACMA, Nerida O’Loughlin said the revised and strengthened Telecommunications Consumer Protections Code (TCP) required telcos to promote and sell their products in a fair and responsible manner.
“The industry-developed code also requires telcos to clearly explain key terms and conditions to enable consumers to make informed decisions and to assess a customer’s capacity to pay,” Ms O’Loughlin said.
“We see evidence of customers being encouraged to sign up to multiple plans which do not meet their needs, are excessive or beyond their financial capacity.”
She said the impact of this on the consumer was serious, particularly for those in vulnerable circumstances, leading to financial hardship and denial of access to critical services.
“For new customers on total contracts of more than $1,000 (typically $45 per month), telcos will require customers to provide information about how they will pay their bill,” Ms O’Loughlin said.
“Furthermore, an external credit check from a credit reporting body will be required.”
She said the provisions would also apply to pre-paid customers moving to post-paid accounts.
Ms O’Loughlin said compliance with rules governing sales practices, financial hardship and credit assessment were priorities for ACMA in reducing consumer harm.
“ACMA will be monitoring and investigating non-compliance and testing the effectiveness of the new rules,” Ms O’Loughlin said.
