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ACMA takes action against 3 telcos for failing to abide by ombudsman scheme

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The ACMA has formally warned two telcos for failing to join the Telecommunications Industry Ombudsman (TIO) scheme and directed another telco to comply with the scheme after it failed to pay the required fees.

ACMA investigations found that Eureka Telecommunications Western Victoria Pty Ltd and Fly On IT Pty Ltd contravened the Telecommunications (Consumer Protection and Service Standards) Act 1999 by failing to join the scheme when required. 

A further ACMA investigation found Telnetworks Pty Ltd failed to pay its annual membership fees and case fees for the ombudsman’s complaints resolution service. 

Eureka and Fly On IT are now members of the scheme. Telnetworks has paid all outstanding fees owed to the TIO. 

The TIO scheme is an independent dispute-resolution service for customers with an unresolved complaint about their phone or internet service.

By failing to join the scheme, Eureka and Fly On IT denied their customers proper access to dispute-resolution avenues. 

All eligible telcos in Australia have a legal obligation to join the TIO scheme, pay the required fees and comply with decisions made by the TIO. 

All three telcos were referred to the ACMA from the TIO. 

Telcos that fail to comply with their obligations under the TIO scheme can expect the ACMA to take action. 

The ACMA can seek Federal Court penalties of up to $10 million for companies that fail to comply with decisions of the TIO, and up to $50,000 for each contravention by an individual. 

The ACMA encourages people who are thinking of switching telcos to check if the new provider is a member of the TIO scheme so they have access to the services provided if needed.

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