ACMA to target ISPs and telcos with ‘bill shock’ scrutiny

Australians can soon expect easier-to-understand telecommunications plans, quicker resolution of their issues and less ‘bill shock’, thanks to a series of measures announced by the Australian Communications and Media Authority (ACMA).

These measures come in the form of ACMA’s Reconnecting the Customer (RTC) plan, a draft version of which was launched today. The report is based on reports from members of industry, consumers, consumer advocacy groups and government.

“The way the telecommunications industry in Australia has dealt with its customers must change,” said ACMA Chairman Chris Chapman at the launch of the RTC draft public inquiry report.

The proposals will require more than a thousand Australian telcos and ISPs to conform to six consumer protection measures:

• Improved advertising practices, including simpler call rate information
• Improved product disclosure information
• The introduction of transparent customer care performance reporting
• The ability for customers to monitor the accumulation of charges during a billing period
• The adoption of best practice internal complaints-handling that meets the Australian Standard for Complaints-handling, covering: visibility, accessibility, responsiveness, objectivity, charging, confidentiality, accountability and continuous improvement
• Changes to the governance of the Telecommunications Industry Ombudsman scheme and the prosecution of its best practice standards and systemic issue reporting

These companies will also come under greater regulatory scrutiny to make sure they adhere to the protection measures.

“We are looking forward to the industry taking this ‘guidance’ and considering how it can best be included in the industry’s Telecommunications Consumer Protections Code,” Chapman said.

Telcos and ISPs may also be subject to more direct intervention under the RTC plan, with ACMA suggesting it might impose industry standards and service provider determinations for several of the proposals.

ACMA expects the final version of the RTC report to be released in August.

The deadline for comments on the RTC draft report is 15 July 2011. They can be emailed to reconnectingthecustomer@acma.gov.au.

More information on the six consumer protection measures is available on the ACMA website.