Telstra slapped with warning over cancelations

An investigation by the Australian Communications and Media Authority (ACMA) found the telco breached consumer protection rules in its actions.

Between May and July 2022, Telstra took action to limit the services to 5410 customers after they did not pay their bills.

However, it failed to give them at least five working days’ notice as required under the Telecommunications Consumer Protections Code, ACMA said.

Customers were prevented from making outbound calls except to emergency services and Telstra and some were prevented from receiving incoming calls.

ACMA Chair Nerida O’Loughlin said telcos must take extra care when it comes to taking actions that disrupt people’s services.

“Phone and internet connections are essential for our everyday lives. We use them for work, education, banking, health services and social connection,” Ms O’Loughlin said.

“With the current cost of living pressures, many Australians are doing it tough. By limiting peoples’ services without notice Telstra likely caused these people significant additional stress.”

Telstra has not been fined as a result of its actions but have received a formal warning from ACMA.

“Telcos are obliged to help people facing financial hardship and there are a range of options available to help customers manage their bills,” Ms O’Loughlin said.

Those who find themselves in a difficult position are urged to contact their telco, with options such as delaying payment, discounting fees and switching plans available.