Amid continued failings in several areas, a new directly enforceable instrument will give ACMA more powers to better protect customers facing financial hardship
Industry told to do better: On 6 July 2023, the Australian Communications and Media Authority (ACMA) announced that it had put the country’s telecoms sector “on notice” that it must significantly improve its consumer protection framework. A review of the Telecommunications Consumer Protections (TCP) Code – to which operators must comply – is currently being undertaken by the industry body Communications Alliance and is expected to be finalised before the end of 2024. To inform the process, ACMA has released a position paper setting out its views on the current TCP Code and areas for improvement. According to Nerida O’Loughlin (Chair, ACMA), the regulator has long been concerned that the co-regulatory framework is not delivering the level of consumer safeguards expected of an essential service, with operators falling short in key areas, such as selling practices, disconnection processes, financial hardship assistance and the treatment of customers in vulnerable circumstances.
The regulator expects improvements over the coming months: In parallel, Michelle Rowland, the Minister for Communications, has instructed ACMA to make a directly enforceable industry standard in order to establish appropriate protections for telecoms consumers experiencing financial hardship. O’Loughlin welcomed the announcement, saying that given ongoing cost of living pressures, the regulator intends to move quickly to implement the new rules. In the meantime, ACMA expects industry to demonstrate significant progress towards addressing its current failings. If operators are unwilling to do so, ACMA believes there would be compelling evidence to support moving these protections into direct regulation. Under direct regulation, ACMA will have a more powerful range of enforcement tools to ensure compliance, including remedial directions, enforceable undertakings and financial penalties set by the Federal Court.
ACMA will have a new tool at its disposal: O’Loughlin believes that ACMA’s position paper sends a strong message to operators about the expectations of their customers, adding that improvements on the matters it has highlighted are urgent and cannot wait until the TCP Code review is completed. The paper and the Minister’s direction represent the latest developments in Australia’s continued struggle to improve consumer experience in the telecoms sector. Telstra has been found not to have adequately supported vulnerable customers on more than one occasion, and many operators are collectively underestimating the number of households facing financial hardship. With protection of vulnerable consumers one of ACMA’s major compliance priorities for 2023/24, the direct regulation will provide additional pressure.
