The regulator wants operators to embed how they treat vulnerable customers in their business culture – something it argues hasn’t been done effectively
Australian operators have shortcomings to address: The Australian regulator ACMA has told the telecoms industry how it expects it to treat vulnerable customers. On 24 May, it released a Statement of Expectations covering the key aspects of customer interactions, from selling practices and customer service to the provision of support where customers face financial hardship. The statement has been coming since July 2021, when ACMA proposed it to address some areas in which it saw room for improvement for operators. Back then, ACMA said it was broadly happy with operators’ approach to treating vulnerable customers, but identified concerns related to the regular training of sales staff, and the way in which their interactions with vulnerable customers are monitored.
ACMA wants to see a change in operators’ business practices: The final version of ACMA’s statement sets out four key expectations. Firstly, operators should treat consumers fairly and reasonably, so that consumers are less likely to experience vulnerability and harm. Secondly, they should also be proactive in identifying and responding to consumers in vulnerable circumstances. Thirdly, they are expected to have best-practice policies in place to assist vulnerable consumers to gain and maintain access to telecommunications services. Finally, they should include the support of vulnerable consumers in their business strategy and planning. In line with the initial proposal, the statement also identifies five key priority areas for operators to focus on. These are: culture and practices, selling and contracting, customer service, financial hardship, and credit/debt management and disconnection. For each of these areas, the statement sets out more detailed expectations of what operators should do (e.g. demonstrate that executive and senior management have oversight of the development and implementation of processes to support vulnerable customers).
Internationally, regulators are paying increasing attention to vulnerability: ACMA’s guidelines clearly take a leaf out of Ofcom’s playbook in the UK, which in 2020 adopted guidelines for the treatment of vulnerable customers – requiring operators to develop clear policies and to make senior leaders responsible for embedding them in their organisation’s culture. The issue has gained importance in the last two years, especially in light of the impact of COVID-19. In particular, Ofcom has already proposed a review of its guidelines to include additional advice for operators. Regulators in a growing number of countries (e.g. Belgium, Portugal, and the UK) have either regulated for a social tariff, or encouraged industry to offer them in recognition of the increasing difficulties facing consumers.
