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Cooling off mandatory for 'churned' telco customers

IT Policy - Regulation

The Australian Communications and Media Authority (ACMA) has registered three codes, developed by the Australian Communications Industry Forum (ACIF) that will require 'cooling off' periods for sales of certain telecommunications services.

Registration of the three codes - ACIF C515: 2005 Pre-selection Industry Code, ACIF C531: 2005 Commercial Churn Industry Code and ACIF C570: 2005 Mobile Number Portability Industry Code makes compliance enforceable.

The new cooling off rules will apply when telecommunications providers use telemarketing to encourage consumers to switch mobile phone providers or to pre-select alternative service providers on their landline phones.

Acting ACMA chair, Lyn Maddock said: "The new rules give consumers greater time to consider their purchasing decisions. If the consumer is not satisfied with the services offered by their new provider, they now have the option of having their old services restored without penalty during the cooling-off period."