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ACMA to set out expectations for how Australian operators should treat vulnerable customers

ACMA takes a leaf out of Ofcom’s book, requiring operators to improve the training of staff and the monitoring of interactions with vulnerable customers

ACMA will go on to set out how it expects the industry to meet the needs of vulnerable customers: The Australian Communications and Media Authority (ACMA) has raised concerns over how the telecoms industry deals with vulnerable customers, and wants to set clearer expectations on how it should do so in the future. Last week, ACMA published an audit report to assess operators’ compliance with their regulatory obligations in the Telecommunications Consumer Protection Code. The Code requires operators to follow “best practice” in dealing with vulnerable consumers, in line with the guidelines approved in 2011 by the competition authority, the ACCC. The report recognised positive practices of several providers, but also areas where there is room for improvement. As a result, ACMA is now working on a Statement of Expectations, on which it is seeking views from stakeholders until 8 September.

Operators have been told to improve in two areas: ACMA is generally happy with how operators identify vulnerable customers. Most of the nine operators audited had a “broad and inclusive approach”. All operators had regard to the ACCC’s guidance, and five identified additional criteria to indicate vulnerability. On the other hand, ACMA identified concerns related to the regular training of sales staff, and the way in which their interactions with vulnerable customers are monitored. A large proportion of the sales staff of three operators went for over 12 months without training, and in two cases the training did not have a specific focus on vulnerable consumers. Similarly, regular monitoring of customer interactions often does not include vulnerable customers. On this aspect, ACMA is concerned that monitoring programs may not be sufficiently thorough.

Five priorities to focus on: ACMA’s proposed Statement of Expectations identifies five priority areas for operators: internal business practices, selling and contracting, customer service, financial hardship, and disconnection. For each area, the statement sets outcomes that operators are expected to achieve – providing examples to help operators. For example, one of the outcomes expected in selling and contracting is that operators do not reward their staff for upselling to vulnerable customers. This could be achieved by designing the sales incentive programmes accordingly. The proposal has similarities with the guidelines approved by Ofcom in the UK in July 2020, which require operators to develop clear policies for the treatment of vulnerable customers and to make senior leaders responsible for embedding them in their organisation’s culture.

Source: https://www.acma.gov.au/articles/2021-07/expectations-telcos-dealing-vulnerable-consumers