Via The Age
Australians spend $1.5 billion more than they need to each year on mobile phone bills but new rules will ensure plans are worded more clearly, that the word “cap” is avoided, and that customers are warned before they go over their data limit.
The code will apply to every service provider in Australia. Compliance with the code is no longer an option
The Telecommunications Consumer Protection (TCP) code, announced today by the Australian Communications and Media Authority (ACMA), will act as a rulebook for telcos, such as Telstra and Optus, on how to engage with their customers in a way that will eliminate “bill shock”.
“We are hopeful that its adoption will result in clearer advertising, easier comparison of products, better information about contracts and better tools to help consumers avoid bill shock,” said Teresa Corbin, CEO of the Australian Communications Consumer Action Network (ACCAN), which proposed the code.
A public inquiry conducted by the ACMA estimated that the annual recurring cost for customers who chose the wrong plan was $1.5 billion. Complaints cost telcos and their customers a further $108 million, while telcos writing off customer’s bad debts cost them $113 million a year.
Under the new code, which will be enforced by the ACMA from September 1, customers will receive warning messages when they have reached 50 per cent, 85 per cent and 100 per cent of their monthly allowance for calls, messages and data.
But there’s a catch: telco’s data notification warnings won’t have to be sent in real-time and could be received by customers up to 48 hours after reaching a certain limit, apparently due to some telco’s billing systems being incapable of alerting customers of their usage in real-time.
Kath Silleri, an ACMA spokeswoman, said requiring all telcos to make available access to real-time information regarding customer accounts was something she would like to see implemented by all telcos but stopped short of saying the ACMA would enforce it.
The use of the term “cap” will be banned unless plans have a definitive limit that cannot be exceeded, and other potentially misleading terms will be more tightly controlled.
Telcos will also be required to offer customers a “Critical Information Summary”, which details pricing and minimum spend information across all products in a standardised format. Most advertisements will have to include the cost of a two-minute national call, a standard SMS and 1MB of data.
“The code will apply to every service provider in Australia,” said ACMA Chairman Chris Chapman. “Compliance with the code is no longer an option.”
A new compliance monitoring body, Communications Compliance, has been established to enforce the code, headed by former Telstra executive Deirdre Mason.
However, the ACMA, unlike the Australian Competition and Consumer Commission, can issue directions to telcos to comply with the new code, but cannot actually fine or penalise providers for not adhering to it, though it can still take them to the Federal Court. Similarly, Communications Compliance will require non-compliant telcos to submit an “action plan” outlining how they will better perform, but no fines or penalties will be issued.
ACCAN expressed concerns that customer service problems will continue unless the ACMA is given more power to enforce the code.
“[The] ACMA does not at present have strong enough powers to enforce the code,” said Corbin. “Enforcement powers are essential in getting industry compliance.”
The network said it would release a guide to the code, highlighting key points and consumers’ rights. It has also written to the Communications Minister, Senator Stephen Conroy, asking him to increase ACMA’s disciplinary powers.
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