The ACMA to replace telco code with enforceable standard

The Australian Communications and Media Authority will replace the Telecommunications Consumer Protections Code with an enforceable industry standard, in a move designed to strengthen safeguards for telco customers.

The industry-developed code has been the main consumer protection mechanism for residential and small business customers in Australia. It covers areas including advertising, responsible selling, treatment of vulnerable consumers, and credit and debt management.

Why ACMA is replacing the code

Nerida O’Loughlin, Chair of the ACMA, said direct regulation would deliver stronger protections as telecommunications services become more essential to daily life.

“Consumer reliance on telecommunications is far greater today than when the current code was made in 2019,” O’Loughlin said. “The harms to consumers are also greater when services are unavailable or protections are lacking.”

She said recent network outages, Triple Zero disruptions, issues linked to the 3G shutdown process, and concerns around responsible selling had undermined confidence in the sector.

“Now is the time to move the remaining consumer protections into direct regulation so that expectations are consistent, obligations are clear and are backed by stronger and more immediately available enforcement powers for the regulator,” she said.

What the new standard is expected to cover

According to the ACMA, the new standard is intended to give consumers greater confidence that telcos are selling services fairly and not offering products customers cannot afford or that fail to meet promised coverage or service levels.

“For example, telco consumers must have confidence that selling practices are fair and that they will not be sold services they cannot afford, do not deliver the service for which they paid or the coverage they have been promised,” O’Loughlin said.

The regulator noted it has already shifted several safeguards from industry codes into enforceable standards in recent years. These include complaint handling, financial hardship obligations, and protections for people experiencing domestic and family violence.

What happens next

The decision follows an industry consultation and development process that began in 2023 through the Australian Telecommunications Alliance and its predecessor.

Under the Telecommunications Act 1997, industry must first be given the opportunity to develop codes of practice before the ACMA can impose a standard.

O’Loughlin said the regulator acknowledged the work undertaken by the alliance and its members, but said the process had not produced a code suitable for registration.

“However, the ACMA still does not have before it a code capable of registration,” she said. “We have also considered the contemporary expectations of consumers and decided that moving to an industry standard is now necessary.”

The ACMA has now started the process to determine an industry standard under section 125 of the Telecommunications Act 1997. The process will include a period of public consultation.

The existing 2019 TCP Code will remain in force until the new standard begins. Once the standard commences, the code will cease to be registered.

Keep on top of the most important media, marketing, and agency news each day with the Mediaweek Morning Report – delivered for free every morning to your inbox.