ACMA rejects draft consumer code as calls to end self-regulation grow louder

The Australian Communications and Media Authority (ACMA) has accused carriers of taking a weak stance when it comes to safeguarding the interests of Australian telecommunications consumers.

Rejecting the industry’s most recent consumer protections proposal, the ACMA said the sector is not delivering at levels consumers expect.

The regulator has given the sector 30 days to submit a revised set of consumer protections or risk having rules set for them, ending industry self-regulation.

The code is the result of negotiations between telcos, consumer advocacy groups, regulators and other stakeholders and registered by ACMA under provisions of the Telecommunications Act 1997.

The latest round of negotiations aimed to revise the current version of the telecommunications consumer protections (TCP) code, which was registered in 2019.

It has been in the making for over two years.

ACMA chair Adam Suckling said it was disappointing that the process had not delivered protections that consumers deserve.

“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,” he said.

The Australian Telecommunications Association (ATA), the industry lobby that represents carriers in the negotiations shared the regulator’s disappointment with the outcome of the consultation process.

“The draft code has been through multiple rounds of consultation with key stakeholders since May 2023, and has taken this feedback into account to deliver a draft that would have substantially uplifted consumer protections for Australians,” ATA chief executive Luke Coleman said.

The ACMA listed irresponsible telecommunications sales practices and credit assessments, disconnection policies and consumer awareness of service coverage among the issues it was most concerned about.

“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,” Suckling said.

The Telecommunications Industry Ombudsman (TIO) echoed the regulator’s concerns about unethical telco sales practices.

“We’ve been clear from the start about protection gaps in the TCP Code. We want to see rules that clearly say you cannot sell people phone and internet services they do not need, do not understand, or cannot afford – rules that say you cannot disconnect people from an essential service except as a true last resort,” ombudsman Cynthia Gebert said.

“It has been a long code review process that has led to some improvements for consumer protections, but key concerns we’ve raised weren’t addressed”.

“Whatever form the rules take, it’s not just about filling gaps by setting minimum standards, it’s about making sure minimum standards are fair,” she added.

Coleman said that the ATA is ready to continue negotiations and will respond to ACMA’s notice within 30 days.

Telecommunications consumer advocacy body, the Australian Communications Consumer Action Network (ACCAN), was less optimistic that stakeholders could meet the 30-day timeframe.

ACCAN chief executive Carol Bennett called instead for the ACMA to use its legislative powers to regulate the industry directly.

“There is no time to waste – consumers need and deserve protection from harm,” Bennett said.

“After almost 30 months of back-and-forth consultation and stalled progress on consumer protection, we have little confidence that another 30 days is going to deliver the code improvements that Australians need.

“The reality is that industry is acting in its interests which are not about putting the public interest first, which is why self-regulation is failing Australians”.