Legal Comment by Mark Illidge of Hinterland Lawyers

August 2005

Given the role that the internet, mobile phones, telephones, and cable television play in our lives today, it is reassuring that various regulatory bodies are moving to further protect our rights.  Mobile phones and related telecommunications issues are in the top 10 topics of complaint by consumers to the Office of Fair Trading.

Many of you will have been subjected to a barrage of phone calls from people selling telecommunications packages.  Occasionally consumers are then encountering problems when transferring their telephone services to other companies.  These problems include delays in customer transfer (referred to as 'delayed churn'), and unauthorised customer transfer.  The Australian Communications and Media Authority (ACMA) has registered a telecommunications industry code of practice on customer transfer between telephone companies.  The code is voluntary, but as it is registered under the Telecommunications Act, the ACMA may direct a telephone company to comply if the code is contravened.  For further information visit acma.gov.au. 
 
Sometimes unauthorised transfer occurs due to unethical or illegal selling practices such as by telephone companies' salespeople obtaining a person's agreement by deceptive or misleading means, or by misrepresenting what the person is actually agreeing to. It is likely that these practices contravene the Trade Practices Act 1974. If you have been the victim of such practices you should contact the Australian Competition and Consumer Commission (ACCC).  You can also contact the Telecommunications Industry Ombudsman (TIO) on Freecall 1800 062 058.

A new telecommunications industry code will also result in the review of contracts used by telecommunications service providers for the supply of telecommunications services to consumers and small business.  Service providers have until early November 2005 to comply with this Code. The Code's intention is to identify and prohibit the use of ‘unfair' terms in contracts, and ensure contracts are presented in ‘plain English'.  A failure to comply with the Code may result in a compliance direction from the ACMA or a fine.

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