Eight telcos threatened with hefty fines over practices against ‘struggling’ customers

Picture this: You're sitting down to have a lovely video chat with your grandchildren, ready to see their beaming faces and hear about how school was for them, only to find out your internet service isn’t working.

Or imagine you need to dial triple zero for an emergency—but your phone line seems to have been suspended without your prior knowledge.



The unfortunate truth is that these scenarios aren't mere stretches of the imagination.

Recently, the Australian Communications and Media Authority (ACMA) took action against eight major telecommunications companies, including Foxtel, TPG, Optus, and Belong (owned by Telstra).


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Telecommunications companies should adhere strictly to the Telecommunications Consumer Protections Code when disconnecting internet and phone services, ensuring they provide clear and accurate information to customers about the disconnection process and any associated fees. Image by StartupStockPhotos from pixabay



These well-known names faced scrutiny for not offering sufficient protection to their most vulnerable customers, particularly those facing financial hardships.

The Australian Communications and Media Authority (ACMA), acting as the watchdog for customers, expressed strong disapproval of the telcos' actions.



They didn't hesitate to threaten these companies with hefty fines of up to $250,000.

Disrupting phone and internet services, especially during challenging times, is seen as a significant blow to customers, and ACMA is determined to address this issue firmly.

ACMA chairperson Nerida O’Loughlin sternly reminded these companies to 'lift their game'. Indeed, 'significant distress' just scratches the surface of the problems caused by such unjust actions.

O’Loughlin said, ‘With the current cost of living pressures, I expect all telcos to take the utmost care with customers who are struggling with bills. Telcos need to lift their game to help their customers or face further regulation.’



Now, let’s look at the nitty-gritty, shall we?

Our interest is piqued by the Telecommunications Consumer Protections Code (TCP Code), which gets thrown around quite a bit during such discussions. What does this TCP Code mean for us customers?

Well, in a nutshell, it's a set of rules that telecommunication providers must abide by when dealing with consumers.

It safeguards consumer rights, improves customer service, prevents bill shock, and establishes fair practices for all telecommunications service providers.

It spans areas like billing, customer transfers, complaint handling, contracts, selling practices, and more.



The likes of Exetel, Foxtel, MyRepublic, Optus Mobile, Southern Phone Company, Telstra and TPG were found to have failed to stick to this TCP Code.

Most were pulled up for not giving their customers the required five working days' notice before they decided to toss their services out the window—a significant breach of these customers’ rights.


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Companies must handle customer complaints and disputes with transparency, empathy, and timely resolution to protect consumers' rights and maintain a high standard of customer service. Image by fancycrave1 from pixabay



To make matters worse, the ACMA also found Foxtel, Southern Phone Company, and SpinTel didn't even share their financial hardship policies with their customers.

We're talking about loyal customers, mind you, who, amid financial difficulties, were kicked instead of being helped.

It doesn't stop there.



Six of the telcos—Belong, Foxtel, MyRepublic, Southern Phone Company, SpinTel and Vodafone—did another disservice to customers by withholding crucial information in their disconnection warnings.

ACMA has taken a stand, ordering these companies to strictly adhere to the TCP Code or get ready to open their deep pockets to face the financial blow.

Key Takeaways
  • Eight Australian telcos, including Foxtel, TPG, Optus and Belong, have been criticised by Australian Communications and Media Authority (ACMA) for not providing adequate safeguards to protect vulnerable customers from service restrictions, suspensions or disconnections.
  • ACMA boss Nerida O'Loughlin emphasised that limiting access to phone and internet services could cause 'significant distress', intimating these providers need to exercise greater care.
  • The telcos were accused of breaching the terms of the Telecommunications Consumer Protections Code (TCP Code) terms, with the authority issuing a stern warning that they should comply with the code or possibly face fines up to $250,000.
  • The ACMA highlighted that six telcos—Belong, Foxtel, MyRepublic, Southern Phone Company, SpinTel and Vodafone—failed to provide the necessary information in their restriction, suspension or disconnection notices, which would have helped customers understand their situation and act accordingly.

These underhanded tactics by big-name telcos raise a simple yet poignant question: Are we receiving the service and respect we deserve?

We all rely on seamless telecom services, be it for connecting with families, social services, or medical emergencies. These services are not luxuries but fundamental necessities in day-to-day living.



Remember, members; you wield more power than you think. You're the ones keeping these giants in the business. These enterprises rely on our customs; we shouldn’t hesitate to raise our voices when something feels amiss!

Have you ever experienced unfair treatment or disruptions in your telecom services from these big-name telcos?
 
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Ha! Maybe that is why we are having so much trouble with our phones and internet. Hope they do lift their game or I think a lot of customers will go elsewhere.
 
WTF? Don't people KNOW that they MUST pay their phone bills in order to have continued service?

Also, it is my understanding that for calls to 000 your mobile will work regardless of wherher there is an active phone contract or not. In fact, I have a very old mobile without a SIM card, even it is capable of making emergency phone calls.
 
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I was having major discussions with Telstra Ihad my account set up direct to debit sometimes the payment didn't go through and it was cut off during the night without notice needless to say I was not impressed, and would call the local Telstra shop no answer so I have to drive 60km when I get there I am asked if I have a appointment I say no because nobody answers your phone, after a short period of silence I am asked why I am in store I tell them why they say go to the counter and pay the account.

After a few times I got sick of it so I changed carriers I have not had a problem since best of all they do all the upgrades from their end I received a email giving me notice that they are cutting my service for a few minutes in the middle of the night while the update is installed, I am very pleased with Aussie Broadband
 
I was having major discussions with Telstra Ihad my account set up direct to debit sometimes the payment didn't go through and it was cut off during the night without notice needless to say I was not impressed, and would call the local Telstra shop no answer so I have to drive 60km when I get there I am asked if I have a appointment I say no because nobody answers your phone, after a short period of silence I am asked why I am in store I tell them why they say go to the counter and pay the account.

After a few times I got sick of it so I changed carriers I have not had a problem since best of all they do all the upgrades from their end I received a email giving me notice that they are cutting my service for a few minutes in the middle of the night while the update is installed, I am very pleased with Aussie Broadband
I switched to Aussie Broadband too a couple of years ago and like you have had no billing, payment or service issues since. I like the fact they inform you even when it is NBN working on the service and how long my service may be down. And they have a customer service centre in Australia!
 

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