Action on telco consumer protections: July to September 2023

On 6 July 2023, we published the What consumers want – Consumer expectations for telecommunications safeguards position paper. It sets out our view on the TCP Code and areas for improvement. 

The position paper has been informed by:

• regulatory monitoring
• compliance and research activities
• our understanding of existing consumer safeguards
• findings of government and external research
• discussions with consumer advocates.

On 6 September 2023, the Minister for Communications directed us to make a new industry standard by 15 February 2024. We have commenced drafting the ‘financial hardship’ standard. It will enhance protections for telco customers who are (or may be) experiencing financial hardship. This will be through the provision of information and appropriate financial support to help them meet their payment obligations and remain connected to essential telco services.

The standard must commence in full at the earliest practical opportunity, and no later than 29 March 2024.

Protecting telco customers in financial hardship

We continued to prioritise telco customers experiencing financial hardship and focus on how telcos are complying with their obligations to support these customers. This includes monitoring direct debit and responsible selling practices.

We commenced 3 investigations into TCP Code rules relating to misleading sales and advertising practices, and direct debit requirements. We also completed one investigation that resulted in directing a telco to comply with the advertising rules in the TCP Code. 

Our compliance activity in areas such as financial hardship, direct debit and responsible selling practices over many years will inform the development of the financial hardship standard.

Supporting telco customers experiencing domestic and family violence (DFV)

We continued to engage with the Telecommunications Industry Ombudsman (TIO) and community advocacy groups to understand the telco issues facing consumers affected by DFV. 

In November 2023, we will seek information from selected telcos to:

• assess their compliance
• understand the systems and processes they use to identify and assist customers affected by DFV. 

Responses to our mandatory information-gathering notice are due in mid-December 2023. 

Telcos blocked over 225.5 million scam calls in the quarter under the Reducing Scam Calls and Scam SMs industry code. Telcos also blocked over 79.4 million scam SMS in the quarter.

Our audit of SMS aggregators’ compliance with new ‘reducing scam calls’ and scam SMS rules is ongoing.

Read more about our 2023–24 compliance priorities.

We started 7 investigations into telco compliance with:

• TCP Code rules that set out telco selling practice requirements (1)
• TCP Code rules that set out telco direct debit requirements (1) 
• TCP Code rules that set out telco advertising requirements (1)
• TCP Code rules that set out telco billing requirements (2)
• IPND rules and various anti-scam rules, including to prevent identity theft and SMS scams (2).

We completed 10 investigations into telco compliance with:

• TCP Code rules that set out telco advertising requirements (1)
• legislation that requires telcos to comply with the TIO scheme (3)
• TCP Code rules that set out telco billing requirements (2)
• priority assistance obligations (1)
• IPND rules and various anti-scam rules, including to prevent identity theft and SMS scams (3).

We also conducted an audit of all non-NBN Co Statutory Infrastructure Providers (SIPs) to assess compliance with obligations to publish wholesale terms and conditions on their websites. We are working with SIPs to improve compliance with these obligations.

Our compliance and enforcement outcomes for the quarter included:

• Directing Starlink to comply with the advertising rules in the TCP Code. 
• Directing Known Pty Ltd (trading as Burst SMS), Twilio Inc and Vonage Business Inc to comply with the SMS anti-scam rules in the Reducing Scam Calls and Scam SMs Code.

View our finalised investigations into telco providers. Please note that we do not generally publish ‘no breach’ findings or investigation reports before taking enforcement action.

We started 24 compliance assessments and completed 14 compliance assessments into telco compliance with a range of consumer safeguards. These included TCP Code rules.

The Consumer Consultative Forum (CCF) allows consumer, industry and government stakeholders to meet and discuss telco issues affecting consumers. We also hold 2 online meetings each year for consumer representatives to share information and set CCF meeting agendas. 

Consumer representatives of the CCF met online in July 2023 and received an update on our Financial hardship in the telco sector report, research and compliance and enforcement activities. Representatives were also given an overview of:

• Communications Alliance’s revised Assisting Consumers Affected by Domestic and Family Violence Guideline and the ACMA’s domestic and family violence compliance priority
• the ACMA’s work in combatting scams, including the Reducing Scam Calls and Scam SMs Code that was registered in July 2022, associated compliance activity, and the SMS Sender ID registry
• the TCP Code review.  

Next CCF meeting: October 2023.

Check the accessibility file for the information shown in the chart above. 

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Accessibility file: Action on telco consumer protections – July to September 2023