Telco upselling and mis-selling going from bad to worse

According to research released by Roy Morgan in early March, the telecommunications sector is Australia’s least trusted, and Optus is the least trusted telco.

At the heart of the issue is the fact that the telco sector regulates itself. It writes the Telecommunications Consumer Protection (TCP) Code, which is then reviewed and approved by the Australian Communications and Media Authority (ACMA).

In the view of many consumer advocates, this is basically a rubber stamp, and we continue to be poorly served by the consumer services sector we arguably depend on the most.

Selling customers services they don’t need and probably can’t use is one major longstanding issue, and it’s one that is only getting worse according to the Fair Call Coalition, an alliance of 23 consumer and community organisations (including CHOICE).

Unconscionable conduct

In 2024, CHOICE reported on one particularly egregious case, in which Optus pressured around 429 consumers into paying for telco services that were grossly unsuitable for their circumstances, both financially and technologically. Many were First Nations Australians from regional and remote areas or people from culturally and linguistically diverse backgrounds.

Optus paid a $100 million penalty for the conduct in a case brought by the Australian Competition and Consumer Commission. An ACCC case arising from similarly unconscionable practices resulted in a $50 million penalty for Telstra in 2021. ACMA rarely takes action on TCP Code violations, and simply reminds telcos to follow the code when it does.

One in five subject to the hard sell

Recent research from the Australian Communications Consumer Action Network (ACCAN) – which leads the Fair Call Coalition – reveals that one in five Australians have felt pressured to purchase a more expensive plan than they wanted, and over one in three have experienced unexpected changes to their contracts around terms and conditions. (The data comes from Wave 3 of ACCAN’s Consumer Sentiment Tracker, which was based on nationally representative survey responses taken between 13 February and 2 March 2026.)

For ACCAN CEO Carol Bennett, the results are further evidence that ACMA should scrap the TCP Code and directly regulate the sector, especially in problem areas such as sales practices, credit assessments, disconnections and coverage information. It’s a move that the Fair Call Coalition has repeatedly called for.

“Despite the ACMA finding the current code to be deficient and rejecting the revised TCP Code presented by industry at the end of last year, they still haven’t moved to directly regulate consumer protections. This is leaving consumers at ongoing risk of harm,” Bennett says.

The latest research “has reinforced that trust in this sector is in the doldrums and consumer wellbeing is at threat. Consumers feeling unprotected plays no small part in this result”.

Advocates speak: Direct regulation the only solution

The Telecommunications Industry Ombudsman’s 2024–25 annual report revealed that hardship complaints to the ombudsman went up 46% compared to the previous 12 months. Many of these complaints would have stemmed from a gaping hole in the TCP Code around sales and credit assessment practices. The industry-written code lacks enforceable standards in these areas.

Managing director of Bush Money Mob Alan Gray says ACCAN’s consumer sentiment data “aligns exactly with what our remote Aboriginal clients are experiencing around the Outback. Remote financial counsellors know that large telcos simply have not learned the lessons [from the Optus and Telstra cases]. Direct regulation cannot come swiftly enough”.

Jillian Williams, advocacy manager at the Indigenous Consumer Assistance Network, says the advocacy group “has been supporting hundreds of people who have experienced significant loss and stress as a result of telco misconduct that was allowed to occur over many years”.

“A strong and enforceable code, delivering stronger consumer protections, could have prevented much of the harm our service has seen,” she adds.

CEO of the Consumer Action Law Centre Stephanie Tonkin says “the time has long since passed for the telco industry’s self-regulated code to be put in the bin, as it has manifestly failed to protect Australia’s consumers, especially those in the most vulnerable situations, from harm”.

“We continue to hear from people impacted by mis-selling and unfair disconnections, and I am calling on ACMA to end the delay, do the right thing, and finally regulate this vital, essential service.”

The TCP Code is currently sitting with ACMA, which has yet to approve or reject the latest version.

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Andy Kollmorgen

Andy Kollmorgen is the Investigations Editor at CHOICE. He reports on a wide range of issues in the consumer marketplace, with a focus on financial harm to vulnerable people at the hands of corporations and businesses. Prior to CHOICE, Andy worked at the Australian Securities and Investments Commission (ASIC) and at the Australian Financial Review along with a number of other news organisations. Andy is a former member of the NSW Fair Trading Advisory Council. He has a Bachelor of Arts in English from New York University. LinkedIn

Andy Kollmorgen is the Investigations Editor at CHOICE. He reports on a wide range of issues in the consumer marketplace, with a focus on financial harm to vulnerable people at the hands of corporations and businesses. Prior to CHOICE, Andy worked at the Australian Securities and Investments Commission (ASIC) and at the Australian Financial Review along with a number of other news organisations. Andy is a former member of the NSW Fair Trading Advisory Council. He has a Bachelor of Arts in English from New York University. LinkedIn