Statement re: ACCC unconscionable conduct proceedings

Published 31/10/2024

• Unconscionable conduct in sales - particularly to vulnerable customers - is unacceptable behaviour.
• The court proceedings announced by the ACCC are a clear reminder that telcos are subject to strong direct regulation with the possibility of heavy penalties, in this case through the Australian Consumer Law.
• Calls for additional direct regulation as a result of today’s announcement miss the point: existing laws are working exactly as they should. Australian regulators are tigers with teeth - they have strong enforcement powers, and they are not afraid to use them. Previous enforcement action for unconscionable sales includes the second-highest penalty ever imposed under the Australian Consumer Law.
• Even with these laws in place, industry is taking further action to strengthen consumer protections around sales practices. Communications Alliance is currently updating the Telecommunications Consumer Protection (TCP) Code including a new section focussed on responsible sales practices, with consumer remedies and claw-back of sales incentive payments when mis-selling is identified. The TCP Code is regulated by the ACMA, with telcos subject to enforcement action for breaches.
• Telcos are also subject to direct regulation for customers experiencing financial hardship, with rules in place requiring telcos to provide free-of-charge assistance to customers.