Revised telecom code seeks stronger consumer safeguards

Communications Alliance has put forward broad revisions to the Telecommunications Consumer Protection (TCP) Code, suggesting that the Australian Communications and Media Authority (ACMA) be granted expanded enforcement capabilities to address breaches more promptly.

The proposed updates coincide with a decline in telecommunications complaints, which have reached their lowest level since 2004. Less than 57,000 complaints were lodged with the Telecommunications Industry Ombudsman in the last year. The revisions mark a concerted effort to further protect Australian telecommunications consumers.

The revised TCP Code draft outlines several key changes to strengthen consumer protections. Notably, ACMA would receive enhanced enforcement powers, and all Carriage Service Providers (CSPs) would need to register with ACMA. Changes also include ensuring responsible selling practices, offering fee-free payment options, improving protections for vulnerable consumers, and establishing regular training and monitoring protocols.

The draft Code is open for public consultation, receiving feedback until 28 February 2025. After this period, comments will be considered for further refinements before the updated draft is submitted to ACMA for evaluation.

Communications Alliance Chief Executive Officer, Luke Coleman, expressed confidence in the proposed changes: "Australians expect the highest standards of business behaviour from telcos, and this major revision of the Telecommunications Consumer Protection Code will ensure they are held to account."

Highlighting the importance of a dual-layer approach to consumer protection, Mr Coleman described the Code as providing "belt and braces" guarantees. "The TCP Code provides a 'belt and braces' approach to consumer protections. First, industry Codes are regulated and enforced by the ACMA, and second, telcos are also subject to the Australian Consumer Law enforced by the Australian Competition and Consumer Commission (ACCC)." This framework intends to ensure the telecommunications sector operates to the highest standards through joint regulator oversight.

The Communications Alliance has advocated for legislative reforms that would empower ACMA to take direct enforcement action without prior directives. Mr Coleman noted, "In the lead up to the 2025 election, Comms Alliance has called on both major parties to support legislative reform enabling ACMA to take immediate enforcement action for contraventions of consumer protections Codes." He added that proposed amendments to the Telecommunications Act 1997 have been drafted, and these changes are recommended for introduction during the next parliamentary term.

The updated Code also addresses concerns about sales practices. New rules are proposed to ensure sales align with community standards, including rules on incentive structures that consider customer satisfaction, limits on commissions, and strict actions against mis-selling. Consumers would be informed of their rights, such as refunds in case of mis-selling, alongside clear guidance on how cancelling a service may affect other associated services or obligations.

The suggested revisions stipulate that telcos offer at least two fee-free payment methods, with one being a manual option. Additional protections are directed at consumers in vulnerable circumstances, such as requirements for managing accounts for deceased customers and improved access to interpreter services.

Mr Coleman noted the success in reducing telco complaints, referencing figures from ACMA showing a halving of complaints over the past five years. He stated, "The revised TCP Code comes as telco complaints are consistently at their lowest levels in decades," emphasising the ongoing efforts to maintain these standards through the proposed Code enhancements.

These developments stem from an 18-month consultation process that started in May 2023. The current revisions mark the 18th anniversary of the original registration of the first TCP Code in 2007.