The TIO referred the matters to the ACMA after Red Telecom allegedly failed to pay more than $63,000 to its customers, as required by the TIO decisions.
The Australian Communications and Media Authority (ACMA) announced the court action in a statement released on Tuesday but gave no further details and said it will “not provide any further comment in relation to this matter at this time”.
The ACMA is responsible for ensuring all telcos in Australia join the TIO scheme and comply with decisions made by the TIO.
The ACMA is able to seek Federal Court penalties of up to $10 million for each contravention of telco laws by a corporation, and up to $50,000 for each contravention by an individual.
In a statement issued on Tuesday, the Telecommunications Industry Ombudsman (TIO) said it "welcomes the initiation of Federal Court proceedings by the Australian Communications and Media Authority (ACMA) against Red Telecom Pty Ltd and its sole director Nicholas Kontaxis for alleged failure to comply with Ombudsman decisions".
"The Telecommunications Industry Ombudsman works with phone and internet providers to resolve complaints consumers make about their services. When these complaints cannot be resolved, the Ombudsman makes decisions that providers must comply with.
"When a telco fails to comply with the decisions of the Ombudsman, the non-compliant telco is referred to the ACMA for further action.
"As this matter is now before the Federal Court, the Telecommunications Industry Ombudsman will not provide further comment," the TIO concluded.