Eight telcos get final warnings over consumer protection rule breaches

Eight telecommunication operators have been warned by the Australian Communications and Media Authority (ACMA) after they failed to provide “adequate safeguards” to customers regarding disconnections.

The ACMA investigation found various breaches of the Telecommunications Consumer Protections Code (TCP Code) which could have helped customers avoid service restrictions, suspensions or disconnections.

The telcos involved include Foxtel Management, Exetel, MyRepublic, Optus Mobile, Southern Phone Company, Telstra (Belong), SpinTel and TPG Telecom (Vodafone).

ACMA chair Nerida O’Loughlin said telecommunications companies need to “exercise greater care before taking any action that disrupts people’s service”.

The regulator reviewed the notifications provided to up to 20 customers prior to having their services disconnected.

Except for Vodafone, the remaining telcos failed to provide customers with the TCP Code-required five working days’ notice prior to suspending or restricting their service.

Foxtel, Southern Phone Company and SpinTel also failed to provide information about their financial hardship policies in bill reminder notices.

“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,” said O’Loughlin.

She added that potential penalties of up to $250,000 may apply to any further non-compliance or for failing to adhere to ACMA’s direction.

“With the current cost of living pressures, I expect all telcos to take the utmost care with customers who are struggling with bills.”

Formal warnings have been given to Optus, Belong and MyRepublic while Exetel, SpinTel, Foxtel, Southern Phone Company and Vodafone have been directed to comply with the TCP Code.

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