A new binding standard for telecoms operators is the result of years of work the ACMA has invested into better supporting vulnerable consumers
ACMA sets out enforceable code for financial hardship support
On 7 February 2024, the Australian Communications and Media Authority (ACMA) announced new mandatory industry rules to protect telecoms consumers experiencing financial hardship. The binding Industry Standard on Financial Hardship will replace and enhance measures set out in the Telecommunications Consumer Protections Code, which was developed in 2019 by the Communications Alliance, the industry association for Australian operators. In making its announcement, the ACMA cited findings from its 2023 Financial Hardship report, which showed that of the 2.4m Australians that experienced financial difficulty or had concerns relating to their telecoms bills, less than 4,400 had a financial hardship arrangement in place with their operator. The new rules will come into effect from 29 March 2024, less than one year on from the Government’s instruction to the ACMA to develop an enforceable industry standard on financial hardship.
Improving outreach and expanding options for assistance
The new rules emphasise the need to keep consumers connected and to bridge the gap between existing hardship resources and customers that may not be aware of the support available to them. The regulator’s broad stance is that disconnection should be an act of last resort for operators when dealing with customers with outstanding debt. Some of the key provisions of the industry standard include:
Operators must be more proactive in contacting customers that may be experiencing financial difficulty, including those that have missed at least two consecutive bills or three bills total in the past six months;
Information on financial assistance policies must be made clearly available on operators’ websites and apps, and be presented in a format that is easy to understand and accessible to consumers with disabilities or who speak languages other than English; and
Operators must provide at least six different options for assistance for qualifying customers seeking support, including extending or postponing bill due dates, waiving debts, setting spending limits on behalf of the customer, removing non-essential features of the tariff or moving the customer to a different tariff.
The code also extends the notice period for operators to disconnect customers with outstanding debt from five to 10 days and requires that operators train their staff on interacting with customers that may be facing financial hardship. Should operators be found to have breached the rules, the standard provides immediate enforcement options, including enforceable undertakings, remedial directions and financial penalties.
Supporting struggling consumers remains a compliance priority for 2023-24
In June 2023, the ACMA set out its compliance and enforcement agenda for the year, listing support for customers struggling financially as its top priority. These priorities also included improving support for Australians experiencing domestic or family violence, which is a group of consumers now automatically qualified for assistance from operators under the Industry Standard on Financial Hardship. The regulator also listed combatting SMS scams and policing non-compliant devices as key consumer protection priorities for the year. Improving the experience and outcomes of vulnerable consumers has been a consistent focus of the ACMA since 2020, making the new financial hardship industry standard the latest move in a long-standing effort to better support telecoms consumers and make essential connectivity services more accessible to all Australians.
