Reconnecting the Customer I Summary of proposed solutions
Lifecycle
stage Finding Objective Current regulation Proposal Regulatory mechanism Preferred mechanism
Proposal 1—Improved advertising practices
Pre-sale— The TCP Code rules have The ACMA expects that there The current TCP Code has Require carriage service providers (CSPs) to disclose in advertisements about In accordance with the current Industry agreement on disclosure of
marketing not provided appropriate be clear and enforceable provisions for advertising plans that are not subject to a hard cap or shaping, either: regulatory requirements, the ACMA unit prices may be difficult to achieve.
community safeguards for rules that: (see 4.1.1). Those provisions an effective unit pricing rate and a stated unit pricing rate imposed for each proposes to invite industry to develop a The ACMA is also aware that
and advertising practices. do not require unit pricing or code that requires CSPs to include a advertising practices that confuse
prohibit terms known to component within the included value of a plan and if that included value is
advertising Advertising and marketing be confusing enable easy comparison of exceeded. The effective unit pricing rate is the amount the consumer actually standard unit of effective pricing in all consumers about charging
practices have contributed to plans. pays under the plan (e.g. 300 minutes of calls ‘within a $29 plan’ would cost 0.10 advertisements (in any media) and to arrangements within the included value
consumer confusion about require that include enhanced rules for advertising of a plan are widespread. As such, a
representations about cents). The stated rate is the rate that is charged for a call (e.g. 80 cents a call
products, particularly when plus flag fall). The assumptions on which the effective rate is based must also be practices. more effective intervention would be
comparing and assessing network achieved through an industry standard.
coverage/broadband clearly disclosed
the value proposition of
different plans. speeds can be the volume of calls, SMS or megabytes a consumer would receive within the
substantiated included value of a plan and if that included value is exceeded during standard
provide a reasonable peak times (based on an agreed common unit).
basis for comparison, Enhanced rules about advertising practices should also be developed to meet the
particularly for plans. ACMA’s objective.
The comparative rate of charging should also be included in all bills.
Proposal 2—Improved product disclosure
Pre-contract The TCP Code rules have The ACMA expects that there The current TCP Code has Require CSPs to provide a critical information disclosure summary to consumers In accordance with the current Industry agreement about consistent
inquiries not provided community be clear and enforceable provisions for the delivery of that: regulatory requirements, the ACMA and meaningful disclosure of critical
safeguards for pre-contract rules that require CSPs to information to a customer at gives consumers a summary of critical information about their product (e.g. term proposes to invite industry to develop a information, presented in a similar
information. Many provide to consumers the point of sale (see 4.2.1). of the contract, maximum amount payable for early termination, minimum code rule that requires CSPs to develop format, should be achievable. If an
consumers do not have comparable information about monthly payment) and maintain critical information enforceable code was developed that
sufficient information about, key features of products and disclosure summaries for met the ACMA’s objective, it considers
or a proper understanding of, aspects of a service before is available for different types of products and provides critical information about products/services and to provide a copy that consumer outcomes would be
their telecommunications entering into a contract. those products (e.g. voice call costs, SMS costs, data use costs, exclusions) of that summary to consumers before improved.
product before they enter provides consumers with non-product specific information (e.g. customer service they enter into a contract. Such If agreement was not possible,
into a contract. This contact details, access to spend management tools, cooling-off periods, access summaries are to be in a similar format including agreement about the content
contributes to other problems to internal and external dispute resolution). and contain current information. and format of the summaries, the
such as bill shock. ACMA would consider it necessary to
determine an industry standard.
Proposal 3—Performance reporting and customer service charters
Pre-contract Giving consumers Better transparency around The TCP Code, in its Require CSPs that have more than 30,000 (residential/small business) customers to In accordance with the current Industry is best placed to identify
inquiries information about customer the relative quality of current form, does not report at regular intervals to the ACMA on: regulatory requirements, the ACMA metrics that will measure timely contact
care performance is not a customer care, particularly require CSPs to measure or proposes to invite industry to develop a resolution and complaints-handling
matter dealt with by an CSPs’ ability to resolve report on their customer Customer service performance code rule that meets the ACMA’s performance. However, the ACMA also
industry code. Consumers matters quickly, will care performance. total number of contacts made by existing customers objective and specifies a standardised, recognises that agreement on
place a high value on timely encourage competition. number of repeat contacts made by the same customer within a 45-day period transparent and robust method of methodology for measuring metrics is
contact resolution as an measuring customer care performance critical if the performance-reporting
and
aspect of customer service in a comparable way. framework is to be effective.
that drives satisfaction. Complaints-handling performance If industry agreement was not possible,
However, there is no total number of complaints received by a CSP the ACMA would consider it necessary
transparency about the to determine an industry standard.
total number of that CSP’s residential and small business customers.
relative performance of
CSPs on this matter.
A.
Following on from the CSPs could develop and The TCP Code, in its The ACMA encourages industry The development of customer service
performance-reporting publish a customer service current form, does not Encourage CSPs to consider publishing a customer service charter, which includes members to consider developing charters is a matter that is appropriate
proposal, consumers have charter, with commitments to require CSPs to measure or commitments to a common set of service standards and is presented in a common customer service charters that contain for industry consideration. However, the
limited means to ascertain a common set of service report on their customer format by all industry participants. A charter could cover matters such as: their commitments to a common set of ACMA may consider inviting industry to
the standard of customer standards and care performance. the channel(s) through which a customer can contact their CSP service standards and consequences, develop a code rule requiring CSPs to
care offered by different consequences (if any) for what a customer could expect when making an enquiry using one of those if any, for failure to deliver on those develop customer service charters in
CSPs. This precludes any failure to deliver. Customer channels, which might include, for instance, timeframes for first response and final commitments. order to improve transparency and
meaningful comparison of service charters would resolution encourage competition.
service standards. improve transparency and
accountability, and the format of bills in terms of relevant information and level of detail
encourage competition. the availability of spend-management tools to enable customers to monitor their
usage and financial exposure
what a customer can expect when they make a complaint (which might include, for
instance, when a complaint will be escalated internally for resolution)
the contact details of the TIO.
Proposal 4—Expenditure management tools
Post-sale Consumers’ inability to Customers should be The TCP Code, in its Require CSPs to offer measures that allow customers to effectively monitor the In accordance with the current Bill shock is a key consumer detriment,
issues monitor the accumulation of equipped with the tools they current form, does not accumulation of charges during a billing period, in real time. For products not subject regulatory requirements, the ACMA particularly for disadvantaged
charges during a billing need to manage their own require CSPs to offer tools to a hard cap or shaping, this should include: proposes to invite industry to develop a consumers, and requires a consistent
period is one of the causes telecommunications to effectively manage an equivalent platform-based notification (SMS for phone, email for internet) that code rule that requires CSPs to offer approach across the industry sector.
of unexpectedly high bills. expenditure and reduce the expenditure. alerts consumers at either consumer-nominated or provider-specified spend management tools for products The ACMA is concerned that an
Many consumers do not risk of bill shock. expenditure/usage points (e.g. 80 per cent) that are not subject to hard cap or industry-wide approach to implementing
understand their bills and shaping, are available to consumers effective spend management tools may
charging arrangements. a consumer-nominated expenditure/usage point that cannot be exceeded without without charge and include ‘push’ not be achievable within a reasonable
their express consent and includes notification at a particular expenditure/usage options. time. Accordingly, a more effective
point intervention would be achieved through
details about the expenditure/usage point reached, the consequences of any an industry standard.
limitations and unavoidable exclusions (e.g. roaming costs).
As a transitional measure to encourage the development of tools, CSPs that do not
offer spend management tools would be restricted from recovering an amount in
excess of a specified figure in certain circumstances—e.g. 30 per cent over the
minimum monthly payment or 30 per cent over the bill for the preceding quarter.
CSPs would also be required to include the comparable rate of charging on all bills.
Proposal 5—Internal complaints-handling
Post-sale The TCP Code rules have not The ACMA expects that there The current TCP Code Require CSPs to implement complaints-handling procedures that: In accordance with the current Complaints-handling is fundamental to
complaints provided appropriate be clear and enforceable includes rules about adopt the definition of ‘complaint’ as set out in the Australian Standard for regulatory requirements, the ACMA a well-functioning market. It would be
community safeguards for rules about complaints- complaints-handling Complaints-handling, AS ISO 10002-2006 proposes to invite industry to address more effectively addressed if it was the
complaints-handling. handling practices that set processes. deficiencies in the TCP Code to ensure subject of a service provider
benchmarks across the comply with the guiding principles set out in the Australian Standard for visibility, that complaints-handling provisions determination, which set out rules for
industry and apply to all accessibility, responsiveness, objectivity, charging, confidentiality, being customer- provide appropriate community complaints-handling procedures. There
complaints from residential focused, accountability and continuous improvement safeguards and CSPs’ practices are are stronger incentives for complying
and small business establish benchmarks for ensuring timeliness in handling complaints; documenting adequately regulated. with a service provider rule because of
customers. procedures; and collecting, analysing and reporting complaints information. the risk of significant pecuniary
penalties for non-compliance.
A service provider determination could
operate together with an industry code
that sets out the requirements for CSPs
to meet the minimum standards
established by the service provider
determination.
Proposal 6—Changes to the TIO scheme: governance, best practice standards and systemic issue reporting
External The current dual governance The ACMA wants to ensure The structure of the TIO is Recommend that the regulatory framework and/or governance framework of the TIO Changes to the governing structure of The ACMA considers that legislative
dispute structure (board and council) that the TIO is aligned with not currently subject to be amended to better align it with best practice for EDR schemes by creating a unitary the TIO can be made by the board in amendment to require that the
of the TIO is not consistent best practice by restructuring regulatory oversight. governance model with one overseeing body, which would be responsible for: accordance with the TIO’s constitution. oversight of the TIO be formally part of
resolution with best practice for EDR it so that it has one Changes could also be made through the regulatory framework may have
(EDR) schemes. overseeing body responsible appointing the Ombudsman legislative amendment. longer-term benefits. This is discussed
for governance. dealing with complaints about the TIO scheme below.
monitoring and reporting on trends and issues arising from complaints analysis
monitoring the reporting of systemic issues to regulators
monitoring the TIO’s capacity to manage caseloads.
Membership of the overseeing body would comprise equal numbers of consumer and
industry representatives and an independent chair.
The TIO is unable to deal The ACMA wants to ensure Non-compliant CSPs must Recommend that legislative amendment be considered to: Changes to the TIO’s constitution to The ACMA considers that legislative
directly with members that do that the TIO scheme meets be referred to the ACMA, enable it to deal with non-compliant amendment prohibiting CSPs that are
not comply with its best practice benchmarks who will consider Federal prohibit CSPs (that provide services to residential/small business customers) that members directly. not members of the TIO scheme from
determinations. and is able to deal directly Court action to seek the are not members of the TIO scheme from operating within the telecommunications operating within the
with non-compliant members. imposition of civil penalties. market telecommunications industry, together
Consumer protection require all CSPs that provide communications services to consumers to be a with a power to expel a member that
standards would be member of an EDR scheme that is approved by the ACMA and covers complaints did not comply with the TIO’s
enhanced by restricting CSPs made by retail customers in connection with a telecommunications determinations, would enhance the
that are not members of the product/service. Any such amendment should be considered in consultation with consumer protection standards within
TIO scheme from operating the TIO. The ACMA considers that, in the current environment, consumers are the sector. Other changes to the
within the market. best served by having one EDR scheme (such as the TIO scheme) that deals with legislative framework to require the
telecommunications products/services. Criteria to approve an EDR scheme should EDR scheme in the
reflect the DIST Benchmarks for Industry-based Customer Dispute Resolution telecommunications industry to be
Schemes. approved would bring the TIO into the
regulatory framework.
The TIO’s processes for The ACMA wants to ensure The TIO is not subject to Recommend that the TIO improve its systemic issue identification and reporting Changes to the processes for Improved systemic issue reporting
identifying and reporting that the TIO scheme meets regulatory oversight. The processes by: identifying and reporting systemic could be identified as a criterion that
systemic issues to the best practice. Improved TIO’s procedures provide issues can be made by the TIO. must be satisfied in order for an EDR
regulator do not meet best systemic issue identification for systemic issue widening the definition of ‘systemic issue’ scheme to be approved, if legislative
practice and should be and reporting will benefit identification and reporting, removing any restrictions on the TIO’s ability to commence and conduct amendment was considered
improved. industry, consumers and but this is unsatisfactory. investigations about systemic issues appropriate.
regulators. requiring regular reporting to the ACMA and/or the ACCC on systemic issues that
are identified and confirmed within a particular period, together with details of any
member that does not rectify a systemic problem to the satisfaction of the TIO
reporting on systemic issues in its annual report, including the number of potential
systemic issues identified, the number of confirmed and resolved systemic issues,
and a broad description of the categories into which systemic issues fell during the
relevant period.