The Australian Communications and Media Authority (ACMA) will determine an enforceable industry standard to replace the industry-developed Telecommunications Consumer Protections (TCP) Code.
This code has been the main mechanism providing protections for telco consumers in critical areas such as advertising, responsible selling, fair treatment for vulnerable consumers, and credit/debt management for residential and small business customers in Australia.
ACMA Chair Nerida O'Loughlin said that an industry standard will provide stronger protections for consumers, who now see phone and internet services as an essential part of their everyday lives.
"Consumer reliance on telecommunications is far greater today than when the current code was made in 2019. The harms to consumers are also greater when services are unavailable or protections are lacking.
"Recent issues caused by network outages, Triple Zero unavailability, shortcomings from the 3G shutdown process and significant issues with responsible selling have further undermined confidence in the telco sector's commitment to its customers.
"Over recent years the ACMA has progressively lifted key consumer safeguards from telco industry codes into enforceable industry standards, including for complaint handling, financial hardship obligations and protections for people experiencing domestic and family violence.
"Now is the time to move the remaining consumer protections into direct regulation so that expectations are consistent, obligations are clear and are backed by stronger and more immediately available enforcement powers for the regulator.
"For example, telco consumers must have confidence that selling practices are fair and that they will not be sold services they cannot afford, do not deliver the service for which they paid or the coverage they have been promised," Ms O'Loughlin said.
The ACMA's decision follows an extensive development and consultation process commenced in 2023 by the industry, through the Australian Telecommunications Alliance (ATA) and its predecessor. Under the Telecommunications Act 1997, industry must be given the opportunity to develop codes of practice before a Standard can be put in place by the ACMA.
"The ACMA acknowledges the extensive and constructive work undertaken by the ATA and its members throughout the code development process.
"However, the ACMA still does not have before it a code capable of registration. We have also considered the contemporary expectations of consumers and decided that moving to an industry standard is now necessary," Ms O'Loughlin said.
The ACMA has commenced the process to determine an industry standard under section 125 of the Telecommunications Act, which will include a period of public consultation. The existing 2019 TCP Code will remain in force until the new standard commences, at which time the code will cease to be registered.
