NEW CONSUMER PROTECTIONS TO  HOLD TELCOS TO ACCOUNT FOR SALES PRACTICES

• Strengthened Telecommunications Consumer Protections (TCP) Code to give regulator new powers over sales practices
• Telcos subject to two regulators – ACMA and ACCC – for consumer protection
• Comms Alliance supports stronger regulator powers in legislation

18 June 2025: Communications Alliance, the peak body of the telecommunications industry, has said that a revised industry Code will see telcos held to account by two separate regulators – and be subject to significant fines – for the way they sell products and services to consumers.

In light of the ACCC’s announcement today regarding unconscionable sales practices, Communications Alliance CEO Luke Coleman said the revised Telecommunications Consumer Protections (TCP) Code would provide the Australian Communications and Media Authority with new regulatory powers over sales practices.

“Unconscionable conduct in sales – particularly to vulnerable customers – is unacceptable behaviour. The fine proposed by the ACCC today is a clear reminder that telcos are already subject to strong direct regulation with the possibility of heavy penalties – in this case, through the Australian Consumer Law,” Mr Coleman said.

“The strengthened TCP Code would provide a safety net above a safety net. Not only would telcos continue to be subject to the Australian Consumer Law and the powers of the ACCC, but would also face potential fines from the ACMA for any breaches of the Code.”

Comms Alliance submitted the strengthened TCP Code to the ACMA for its consideration in May.

“There is a misconception that industry Codes are voluntary and self-regulated – nothing could be further from the truth. The ACMA will only register a Code if it provides appropriate enforceable consumer safeguards. Once registered, the ACMA is then responsible for Code enforcement, with telcos subject to significant fines for non-compliance,” Mr Coleman said.

The updated Code includes new and extended obligations to support and protect consumers in the sales process, including through rules about advertising, information and customer support provided pre- and post-sale. It also requires affordability indicator checks, with specific protections from irresponsible sales at point of sale, and clear remedies in place where problems occur – including through mis-selling.

“Comms Alliance also supports the Government’s Enhancing Consumer Safeguards Bill, which will increase the ACMA’s powers, impose higher fines, and take immediate enforcement action against bad behaviour,” Mr Coleman said.

“Combined, the strengthened TCP Code and the Enhancing Consumer Safeguards Bill will provide substantially greater consumer protections – on top of the existing ACCC powers in the Australian Consumer law.”

Telcos are also subject to direct regulation for handling complaints, for customers who may experience domestic, family and sexual violence, and for those struggling with financial hardship – with rules in place requiring telcos to provide free-of-charge assistance to customers.