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| Image courtesy of Bob Goyetche |
The draft revision to the TCP Code has been prompted by many telecommunications service providers welcoming the opportunity to address ACMA's recommendations within the TCP Code. And, because compliance with the TCP Code is mandatory for all telecommunications service providers under the Telecommunications Act 1997 (Cth), all industry participants will need to be ready to implement measures to comply with new obligations and standards under a revised TCP Code.
New obligations under the TCP Code
The CA have flagged that a revised TCP Code will set standards for, amongst other things, advertising, pre-sale disclosure and service usage and expenditure management.
Improved advertising information
ACMA has recommended the need for greater information to be provided in advertising products to improve the customer care experience. However the CA considers that advertising, while it must not be misleading, is the wrong medium to provide comprehensive information to consumers. Instead, the CA has indicated that the revised TCP Code will require telecommunications service providers to provide consumers interested in purchasing a product or service with a Summary of Offer (similar to a product disclosure statement for a financial product) which must include key commercial information of all products offered by the service provider.
Tools to monitor usage and expenditure
In addition to providing accurate information at the point of purchase, ACMA has recommended that all service providers offer their customers usage and expenditure management tools to avoid 'bill shock'.
Despite data usage being the key driver of 'bill shock', ACMA has recommended tools such as live account notifications allowing customers to nominate a maximum credit limit on their account each month and receive real-time alerts (eg SMS for phone, email for internet) as they approach their credit limit. However, because it may not be feasible for service providers' systems to deliver real time account information, the CA has suggested instead that standardised supplier-nominated notifications be sent to customers, for example when the customer reaches 50% or 90% of their credit limit, based on that customer's usage within a 48 hour time frame.
New Telecommunications Industry Ombudsman (TIO) powers
In addition to a new TCP Code there is likely to be stricter regulatory oversight by the TIO based on ACMA's recommendations. Currently the TIO is an industry-based scheme without regulatory oversight by ACMA, and TIO determinations are only enforceable if, upon referral by the TIO, ACMA decides to pursue an action in the Federal Court. Moreover, the current TCP Code only provides for enhanced internal complaints mechanisms and does not address the TIO's external dispute resolution function.
To bolster its powers ACMA has recommended that the TIO be the industry scheme to settle all telecommunications disputes; that TIO membership and compliance be compulsory for all industry participants; and that the TIO be granted powers to enforce compliance with its determinations and impose penalties on non-compliant service providers. If ACMA's recommendations for the TIO are implemented, telecommunications service providers will be subject to a much more stringent regulatory regime than that contemplated by the CA's proposed revisions to the TCP Code.
Where to from here?
CA's revision to the TCP Code will require all telecommunications service providers to implement measures to adhere to a new benchmark for best practice for customer care. However, it is not yet clear whether this benchmark will set a standard satisfactory to ACMA, or whether a more stringent compliance environment (including increased TIO powers) will eventuate.
Partner: Paul Kallenbach
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