The Australian Communications and Media Authority (ACMA) has decided not to register a draft Telecommunications Consumer Protections Code (TCP Code), having assessed that it would not provide appropriate community safeguards for telco consumers.
The TCP Code is the main industry code setting out consumer protections in areas such as advertising, sales, contracts, billing and credit/debt management for residential and small business customers in Australia.
The Australian Telecommunications Association (ATA) had submitted a revised draft TCP Code to the ACMA following an extensive review process. While the ACMA considers the draft was a marked improvement on the existing Code, it did not consider the draft met the legislative tests for registration under the Telecommunications Act 1997.
In particular, the ACMA considered that the proposed protections in areas such as responsible selling, credit assessments, disconnection and the provision of mobile coverage information to consumers would not deliver appropriate community safeguards in the modern environment.
Acting ACMA Chair Adam Suckling said that the decision reflected the importance of having in place an effective consumer protection framework for telco consumers that would endure over coming years.
"Access to telecommunications has become increasingly essential. Australians rely on these services every day in virtually every sphere of life and they deserve clear, robust safeguards that protect them from harm," Mr Suckling said.
"Australian consumers need to be confident that they will be treated fairly when purchasing services, have protection from irresponsible selling, are provided clear and relevant information on mobile coverage and that they will not be unfairly disconnected. Consumers need to be supported if they are experiencing vulnerability and have access to remedies when things go wrong.
"In our view, the draft Code would not deliver the level of protection the community should expect."
The ACMA has issued a formal notice to the ATA requiring it to address deficiencies in the existing 2019 TCP Code within 30 days, being the minimum timeframe available under the legislation. If the ATA fails to provide an acceptable revised Code, the ACMA would have the option to move towards determining an industry standard.
"We recognise that the telco industry has put an enormous amount of work into the draft Code. During this process we have given the telco industry extensive feedback and every opportunity to get this right. It is disappointing they have not been able to develop a draft Code that would deliver what their customers deserve," Mr Suckling said.
Over the last 18 months the ACMA has strengthened consumer protections supporting customers experiencing financial hardship, and customers who are victim-survivors of domestic, sexual or family violence by lifting them out of the current TCP Code and making industry standards.
