ACMA finally rejects self-regulatory telco Code, moves to direct regulation

ACCAN and the Fair Call Coalition strongly welcome the Australian Communications and Media Authority’s decision to reject the draft Telecommunications Consumer Protections (TCP) Code.

For too long, consumers have been exposed to irresponsible ’sales practices’ as stipulated in the Telco Act 1997, inadequate credit assessments, unfair disconnections and misleading coverage information. Today’s decision acknowledges that the industry-led approach to-date has not delivered the safeguards Australians expect from an essential service.

The rejection creates a clear opportunity to move beyond self-regulation and establish direct regulation that prevents harm before it occurs.

ACCAN CEO Carol Bennett said this decision is a watershed moment for the regulation of telecommunications in Australia.

“Communications services are essential to participation in modern life, and consumer protections must reflect this reality,” Ms Bennett said.

“This decision is a very positive step to address vulnerabilities consumers are facing. New ACCAN consumer research conducted by Essential Research shows that 22% of consumers still felt pressured to purchase a more expensive contract than they wanted – despite several major ACCC fines under the Australian Consumer Law for unconscionable sales practices.”

“Direct regulation - backed by robust enforcement – is the only way to ensure Australians are treated fairly when purchasing and using telco services and we have seen the proof of this with the Domestic and Family and Sexual Violence and financial hardship standards.”

“I welcome ACMA’s decision to step in following this dysfunctional and long-winded process, to act in the best interests of Australians and heed the voice of the Fair Call Coalition – a collective of consumer and community representatives who stood in lockstep against this flawed Code. ACMA should now take a proactive role in mitigating consumer harm by enforcing this new Standard.”

ACCAN will work constructively with the ACMA, government, industry and community organisations to develop fit-for-purpose regulatory settings that address responsible sales, proper affordability checks, clear coverage information and fair disconnection processes.

Australians deserve a framework that places community safeguards at its centre. Today’s decision allows that work to begin.

Quotes from Fair Call Coalition leaders

Stephanie Tonkin, CEO of the Consumer Action Law Centre (CALC), said, “The consumer movement has fought for decades to get this reform - a turning point for telecommunications consumer protections in Australia. Nearly three years ago, consumer organisations made the decision to walk away entirely from the code process because it was no longer delivering meaningful accountability or outcomes for the public."

“Direct regulatory oversight is recognition that telecommunications is an essential service, and it must be treated as such. We welcome the leadership of the Australian Communications and Media Authority taking the decision to move to an enforceable standard."

“At last, the telco sector will be subject to clearer rules, stronger oversight, and expectations consistent with other essential industries. This is very good news for consumers and an important step toward restoring trust and fairness in a service that all Australians rely on every day.”

Aaron Davis, CEO of the Indigenous Consumer Assistance Network (ICAN), said, “This is a long-overdue and deeply welcome step toward restoring fairness and accountability in the telecommunications sector. For years, we have worked alongside people who have experienced real harm: financial stress, disconnection from essential telco services, and immense frustration due to systemic failures in an under regulated essential service industry."

“Direct regulation by ACMA signals a clear commitment to putting consumers first. It acknowledges the lived experiences of thousands of Australians who have struggled to resolve issues with their telco providers and too often felt powerless in the process."