Any customer who has had an issue with their telco could benefit from upcoming changes. The outcomes of an ongoing review could be the difference between a positive and negative experience. 

A proposed framework for a reviewed Telecommunications Consumer Protections (TCP) Code has been released, after it was found not to have strong enough protections for vulnerable consumers.

Major players in the telecommunications industry say the new framework still doesn’t go far enough. 

Selling practices, credit assessments, payment methods, disconnection processes and financial hardship assistance all made the list of things a new TCP Code needed to do better, and is currently failing. 

With the goal to address what causes more than 1 million complaints by telco customers each year, experts worry that the new framework built by the Communications Alliance won’t be enough. 

"Unfortunately, the Comms Alliance proposal appears to provide little extra support to prevent customers, including those experiencing domestic and family violence, from being effectively cut off from their telecommunications service, or from being aggressively pursued for unaffordable debt when they are at their most vulnerable,” Consumer Action Law Centre CEO Stephanie Tonkin said. 

According to the Australian Communications and Media Authority, only 67 per cent of those experiencing financial hardship were aware they could request help managing the payment of bills. 

Furthermore, while assistance could be requested by a telco, it was found to be rare for telcos to initiate contact to offer advice or assistance. 

Meanwhile, the number of enquiries about financial hardship to the Telecommunications Industry Ombudsman increased by 26 per cent in the last quarter of 2023. 

"The TCP Code drafting committee appears to have dismissed ACMA's request that telecommunications providers give more payment options to customers apart from direct debit—an issue that our organisations see can contribute to significant consumer hardship," she said. 

While several relevant bodies made submissions to address similar issues, including making assistance for customers experiencing family violence compulsory, Ms Tonkin believes very few recommendations have been incorporated. 

The new CPT Code does however propose a requirement to protect customers affected by DFV from being disconnected, amongst other outlines to ensure more clarity for customers.

"What we want is for the Federal Government to create broader, directly enforceable laws.”

“These should include clear protections to stop mis-selling and support people affected by domestic and family violence, in addition to introducing swift and meaningful penalties for telecommunications providers when these protections are breached," Ms Tonkin said.

A final CPT Code is expected to be implemented in late 2024.