The Australian Communications and Media Authority (ACMA) has formally warned Telstra for breaching the Telecommunications Consumer Protection Code 2007 (TCP Code).
Between 2006 and 2012 Telstra incorrectly billed a large number of international data roaming customers multiple flag fall fees for single data sessions. The incorrect bills reflected incorrect information Telstra received from international carriers and its contracted data clearing house. The TCP Code requires providers to bill customers accurately allowing for certain exceptions. One such exception is where the inaccuracy is caused by reliance on information provided by contractors. Whether Telstra could rely on this exception was a key issue for this investigation.
The ACMA investigation found that Telstra could rely on this exception only until early 2009. It was then that Telstra first received a complaint from a consumer who had been incorrectly billed for multiple overseas data sessions. The ACMA found that billing inaccuracies after that complaint was received were caused by Telstra’s failure to investigate and identify the problems with the information being provided by its contractor.
‘Accurate billing is of the utmost importance’ said ACMA Chairman, Chris Chapman. ‘Our investigation makes it very clear that all telcos need to listen to their customers who report billing problems and be vigilant about any potential issues with the information provided to them by third parties.’ Once the information problem was discovered, Telstra promptly identified all customers who were incorrectly charged for international data roaming and is systematically providing rebates. It has also permanently ceased charging a flag fall fee for international roaming data services.
The ACMA’s decision on this occasion to formally warn Telstra for the breach took into account the fact that Telstra was not the original cause of the problem; that this was the first time a billing issue of this nature had been investigated under the TCP Code; that Telstra itself reported the matter; and that Telstra appears to be otherwise currently compliant with the relevant parts of the TCP Code 2012. Importantly, Telstra proactively implemented a comprehensive program of compensation that mitigated the harm for affected customers.