This is what the ACMA said today following investigations into telcos, who through shrewd marketing have created a “confusopoly.”A draft report by the Communications & Media Authority into the telcomms sector has condemned telco advertising which it says it is gravely misleading consumers about the services on offer.
In March, the Telecommunicaitons Industry ombudsman in Australia said it received 671 calls a day, on average, in the last six months, noting a 20 percent increase in complaints about mobile services. “Bill shock” and the quality of information available to users were two of the key sources of complaint, the report states.
Among its major concerns are the common usage of the term “caps” which it says implies a limit on the amount users pay when in fact it is the minimum spend required.
And just this month, Optus recieved a rap for “misleading” $49 Max Cap ads by the ACCC and fined $200,000.
Unit pricing is also set to be introduced which will allow users gauge how mcuh their $49 or $60 plans is actually costing them and a break down of the allowances and conditions.
The use of “unlimited” another common adjective used by the likes of TPG, Telstra and others when advertising broadband as well as mobile plans also needs to be substantiated or else dropped, the ACMA says.
Under the new rules yet to be finalised, telco’s would also be required to provide consumers with a one-page information sheet which summarises the terms and conditions.
Huge bill shocks would also be a thing of the past with carriers required to notify consumers when they are approaching their limit, which they can nominate if they wish.
And another boon for consumers: if mobile carriers fail to comply they will be forbidden from charging any more than 30 per cent over the cap price.
And several telcos are already jumped the mark, with Vodafone and Telstra’s already announcing anti bill shock therapy, with text notifications and in the case of the latter data speeds will also slow down with no extra charges made.
And Vodafone, one of the first to respond to the ‘Reconnecting the Consumer’ draft report, has also gone one extra introducing ‘Rate Plan Health Check’ for customers who may be on the wrong plan, announced today.
Read Vodafone: We’re Reducing Bill Shocks Too As It Fights Telstra Creep
And it looks like the Authority means business and issued an unequivocal threat to telcos to ship up or pay the price.
“The outcomes that we are seeking … are non-negotiable,” warns ACMA chairman Chris Chapman.
“Marketing and advertising practices in this industry are simply not good enough,” another ACMA exec also warned.
The office of the Telecoms Ombudsman received more than more than 167,955 new consumer complaints last year.
The final draft report is due out in August.
The Australian Communications Consumer Action Network has welcomed the proposed changes.