The issue
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In March, the Minister for Communications, Senator Stephen
Conroy announced an examination of the consumer code development process
and implementation of new enforcement powers for the Australian
Communications and Media Authority (ACMA). Under the reforms ACMA will be
provided with incentives to encourage compliance with codes and
regulations, including making amendments to the Telecommunications
Act.
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Consumer complaints about telecommunications issues are soaring. There was a
31% increase in the number of complaints to the Telecommunications Industry
ombudsman in 2007.
This followed significant increases in complaints in the two previous years —
for example an 81% increase in complaints about mobile phone services in 04/05.
In 2007 the TIO received more than 1,000 complaints every month about mobile
premium services (19x numbers) alone.
But consumer protection in this industry falls far short of good
practice.
Consumer protection in telecommunications is almost wholly based on a self
regulatory (or 'co-regulatory') system. The Telecommunications Act provides for
the development and registration of industry codes of conduct on consumer
issues, with a regulator in place to monitor codes of conduct and enforce
non-compliance.
We believe that co-regulation, properly designed, can play a role in
producing effective consumer protection rules with reduced cost and increased
responsiveness. But the current legislative scheme, consumer advocacy
arrangements and code development culture are not working.
The legislation itself is silent on consumer protection issues, the codes of
conduct are not subject to an effective system of signing and compliance, and
monitoring and enforcement are applied inconsistently.
What we want
CHOICE suggests the following key elements are required to move forward on
better consumer protection in telecommunications:
- A comprehensive review of current co-regulatory arrangements for consumer
protection.
- Establishment of regular effective communication processes between
consumer organisations and government.
- Strengthening consumer representative processes.
- Strengthening funding for telecommunications consumer advocacy and
research.
What we're doing
CHOICE prepared a submission to the Department of Broadband, Communication
and the Digital Economy on the review of the code development process.
CHOICE has prepared a report identifying what we believe are some of the
weaknesses in the current co-regulatory arrangements and some suggestions for
improvement.
We have also written to the Minister for Communications congratulating him on
his interest in reform in this area, and making the points set out above.
Mobile premium services are a particular problem area. See here for more information and Scamtones, our parody video.
More information