ACCAN calls for mandatory consumer protection rules

Stuart Corner
Sunday, 19 September 2010 07:06

IT Policy - Regulation

ACCAN has called for a whole range of mandatory measures to protect telecommunications consumers to replace the present code-based co-regulatory regime, which it says has proved to be woefully inadequate at protecting consumers.

In a submission to the ACMA's enquiry into consumer protection measures in the telecommunications industry, ACCAN is proposing "a new paradigm for consumer protection in the telecommunications industry," to replace "the singular reliance on co-regulatory codes [that] has proven to be a woefully inadequate toolkit in driving adequate consumer protection standards and empowering consumers in a fair, efficient and sustainable market."

ACCAN says: "We believe that co-regulatory codes can remain an important feature of the telecommunications markets but only if they are more robust and complemented with a suite of additional regulatory measures."

ACCAN argues that comparable essential service industries like banking and electricity have mandatory consumer protection arrangements and performance reporting and that the telecommunications industry should be no different.

It proposes:
- enacting mandatory standards for key consumer protection issues such as internal dispute resolution, external dispute resolution and financial hardship, developed and enforced by the regulator to ensure enforceable, minimum requirements in these areas;
- establishing a mandatory public quarterly reporting regime on internal complaints, customer service, credit and debt issues;
- enacting explicit legislative guidance on consumer protection codes and stricter rules on their registration requirements including compliance, independent monitoring and enforcement, and equal consumer representation on all code working committees;
- enacting a suite of compensation payments to consumers for breaches of industry codes and standards;
- ensuring the responsible regulator can promptly and effectively respond to breaches of laws, codes and standards by making directions, seeking undertakings and setting deadlines where necessary;
- empowering designated organisations (such as ACCAN and the TIO) to refer systemic market issues to the regulator for action;
- removing the self-regulatory bias from (at the very least) consumer protection arrangements so that regulators have responsibility for ensuring minimum consumer protections;
- creating a new role for the ACCC to ensure a better regulatory integration between general and industry specific regulations and greater enforcement action.

ACCAN also want the Australian regulatory regime to mimic that in the UK by recognising a category of 'super complaint' to deal with systemic failures. This concept is enshrined in the UK Enterprise Act 2002 and, according to ACCAN, "an organisation may be eligible to make a super complaint if it appears to represent the interests of consumers of any description'¦Super-complaints should be given fast-track consideration by the ACMA, with an obligation to publish a reasoned response within 90 calendar days from the day after a complaint is received'¦The published response must also state the reasons for the decision taken."