The Australian Communications and Media Authority (ACMA) has handed Telstra a warning for breaching consumer protections of more than 5,400 customers before restricting or suspending services.
Between May and July 2022, the ACMA claims that Telstra limited customers’ services due to outstanding bills, without providing a minimum of five working days’ notice, as required under the Telecommunications Consumer Protections Code.
“Phone and internet connections are essential for our everyday lives. We use them for work, education, banking, health services and social connection,” ACMA chair Nerida O’Loughlin said.
“With the current cost of living pressures, many Australians are doing it tough. By limiting peoples’ services without notice, Telstra likely caused these people significant stress.”
Because of the service restrictions imposed by Telstra during the period, the ACMA said that customers were prevented from making outbound calls except for emergency calls or calls to Telstra. Some customers were also unable to receive calls after having their services restricted, unless from emergency services or Telstra.
The ACMA has issued Telstra a formal warning. The government organisation will soon release a report on customer financial hardship in the telco sector.
“Last year we identified and reported to ACMA that a small number of customers – with unpaid bills – didn’t get the required notice before having their services either restricted or suspended,” a Telstra spokesperson told Gizmodo Australia.
“We quickly identified a system error that meant customers without an email address on credit management didn’t receive a letter letting them know that their service would be restricted unless payment was made.
“We fixed the issue in our system and contacted the impacted customers. It should be noted that all customers during this time were still able to call triple zero in the event of an emergency. We take this matter seriously and understand this breakdown in process caused frustration for customers.”
The ACMA encourages any telco customer to contact their service provider if they cannot pay their bill.