ACMA Targets Telcos in Hardship Rule Breach

The Australian Communications and Media Authority (ACMA) has issued formal warnings to four telecommunications companies for failing to adhere to financial hardship rules designed to protect customers struggling with internet and phone bills. The companies, Optus Mobile, Origin Energy, Skymesh, and Swoop Telecommunications, were found to have breached the Financial Hardship Standard, which mandates including specific information in customer communications about assistance options.

Under regulations effective since March 2024, telcos must provide clear guidance in written communications such as bills and reminder notices, detailing how customers can seek help. Investigations revealed that each of these companies failed to comply with this requirement in at least one instance. ACMA member Samantha Yorke emphasized the importance of these rules in alleviating the stress of financial difficulties, stating that the non-compliance of these telcos has let down their customers.

Moreover, Skymesh and Swoop were also found lacking in training staff adequately to handle consumer interactions, a crucial component of the standards. Optus failed to include necessary information in notices confirming financial hardship assistance arrangements. In response to the ACMA’s findings, the companies have begun updating their procedures and training to align with regulations.

The ACMA remains focused on ensuring compliance with the Financial Hardship Standard to safeguard vulnerable customers. The authority warns that further breaches could result in severe penalties, potentially reaching $250,000 per violation. Customers needing assistance are encouraged to contact their service providers, with additional information available on the ACMA website.