ACMA grills telco industry on ‘urgent and non-negotiable’ TCP improvements

The Australian Communications and Media Authority (ACMA) has grilled the telecommunications industry, claiming that it needs to take up "urgent and non-negotiable" improvements to consumer protections.

According to the authority, the current state of the Telecommunications Consumer Protections (TCP) code is not "delivering for consumers in a range of important areas", such as: clarity about purchases and commitment, quality of assistance, timely issue attendance and keeping services promises, payment options, help during difficulty and fair treatment during vulnerable circumstances.

Additionally, ACMA also believes that a revised TCP needs to include the principles of accountability, transparency, accessibility, flexibility, connectedness and fairness.

The TCP is due to be updated by the end of 2024 by industry peak body the Communications Alliance, but this process is not fast enough for the authority.

"We are of the view that, given the harm to consumers from the lack of strong protections, that action by the industry cannot wait until the current identified timeframe for the TCP Code review of end 2024," ACMA said.

The authority released a detailed explanation of its thought process on the matter in a position paper.

"In our view, there are requirements in the TCP Code, such as critical information summaries and other information provided to consumers, and those relating to advertising, customer service, billing and customer contracts, which would benefit from tightening and clarification," ACMA continued.

"However, we have been concerned for some time that the current TCP Code is not delivering for consumers in a range of important areas."

ACMA Chair Nerida O'Loughlin added that the code is "not delivering the level of consumer safeguards expected of an essential service".

"Our position paper shows that telcos are falling short of what customers want in key areas such as selling practices, credit assessments, payment methods, disconnection processes, financial hardship assistance and the treatment of consumers in vulnerable circumstances, including those experiencing domestic and family violence," she said.

Coinciding with the release of the position paper was the federal government's announcement for ACMA to establish an industry standard for "appropriate support" for telco consumers experiencing financial hardship.

While O'Loughlin welcomed the government's announcement, adding that the authority would implement the protections quickly in light of cost-of-living pressures, there was more work to be done.

"Telco improvements on other matters raised in our position paper are also urgent and cannot wait until the proposed TCP Code review end date of late 2024," she said.

"We expect the industry to demonstrate significant progress towards addressing these issues in the next six months. If the industry is unwilling to do so, we believe there is compelling evidence to support moving these protections into direct regulation.

"The ball is now squarely in industry's court to make the necessary improvements to better protect their customers."

ACMA's crackdown on the telco industry comes two months after it cracked down on Sinch Australia, Infobip Information Technology and Phone Card Selector in May for compliance failures that were used by criminals to send SMS road toll, Medicare and Australia Post impersonation scams.