Media Release - Ombudsman report rings alarm bells on consumer harm
ACCAN
Peak communications consumer body ACCAN today has expressed concern about increasing financial hardship complaints (up 46%) and issues regarding poor mobile coverage (up 25%), revealed in the Telecommunications Industry Ombudsman's 2024-25 Annual Report.
ACCAN says the latest annual report from the Telecommunications Industry Ombudsman (TIO) once again highlights a pattern of behaviour by telcos that is harming communities and undermining public trust.
“The TIO’s findings confirm what we are hearing every day - that poor sales practices and inadequate safeguards are hurting consumers, particularly those who are already vulnerable,” said ACCAN CEO Carol Bennett.
“The evidence is overwhelming. Mis-selling, misleading coverage claims, and poor handling of financial hardship are systemic industry issues.”
ACCAN’s own research supports these findings. Early results from the forthcoming Consumer Sentiment Tracker (Wave 2) show that:
- 43% of consumers do not trust their mobile or home internet provider to act in their best interest.
- 30% say the coverage they receive is different to what they were told.
- 21% report feeling pressured to sign up for a more expensive plan than they wanted.
“The TIO's report and our own figures paint a clear picture of limited public faith in the telco industry but more than that, real harm being done by the sector,” Ms Bennett said.
ACCAN is urging the Australian Communications and Media Authority (ACMA) to show leadership by rejecting the industry’s proposed Telecommunications Consumer Protection (TCP) Code, which fails to meet community expectations.
“ACMA must demonstrate that it has the backbone to stand up for consumers. Internal documents revealed through Freedom of Information disclosures show the regulator knows the current Code hasn't been working for some time. It is simply not acceptable to keep accepting a deeply flawed self-regulatory Code that has proven to have failed consumers,” Ms Bennett said.
The TCP Code has been rejected by ACCAN and more than 20 community organisations, who are calling for a move away from weak self-regulation toward proper regulatory settings for the telco sector.
The problems exposed by the TIO and ACCAN’s own research identify symptoms of a deeper failure in Australia’s telecommunications laws. Consumers have been waiting for reform for some time. ACCAN will continue to advocate for improved regulatory and legislative settings which will make a difference to the quality of service and the wellbeing and safety of Australians.
About us:
The Australian Communications Consumer Action Network (ACCAN) is Australia’s peak communication consumer organisation. The operation of ACCAN is made possible by funding provided by the Commonwealth of Australia under section 593 of the Telecommunications Act 1997. This funding is recovered from charges on telecommunications carriers.
Contact details:
Alec Bennetts
Mobile: 0409 966 931
Email: [email protected]
