Australia: telecommunications sector has become so riddled with rogue operators, deceitful behaviour and scams, it can no longer be ignored

[WAtoday] Australia's telecommunications sector has become so riddled with rogue operators, deceitful behaviour and scams, it can no longer be ignored. Unless the industry recognises it has a problem and acts decisively to correct it, it may find change forced upon it by the courts, the Australian Competition and Consumer Commission, and its disgruntled customers.

The laundry list of problems, from misleading advertising to unfair contracts and deceptive mobile phone competitions, has been allowed to proliferate by service providers, publishers and carriers, who have turned a blind eye while taking a slice of profits.

The ACCC receives about 4000 complaints a year regarding telecommunications services. It is consistently the most complained-about industry.

In the 2006-07 financial year the ACCC had 13 major investigations into consumer protection issues in the telecommunications industry under way. In 2007-08 that number grew to 22.

It is not acceptable for carriers to wash their hands of responsibility as deceptive operators use their networks to entrap phone company customers with unwanted, expensive and difficult to unwind subscription services.

We expect carriers to adopt rigorous standards and procedures which in plain language means denying access to their mobile networks for rogue operators. If carriers do not exhibit a responsible attitude, they must expect the ACCC to pursue remedies available to it under the Trade Practices Act.

Likewise, publishers have for too long been prepared to assist these scammers and profit indirectly through allowing them to advertise in their publications. Recent undertakings by ACP Magazines and Pacific Magazines in relation to such ads should be a warning to others that this situation can no longer be tolerated.

The ACCC can, and does, take action against domestic and overseas-based providers of expensive and misleading ringtones, games and other services. But those who allow scammers open access to their customer base are contributing to the erosion of consumer confidence in the sector.

Mobile premium services are among those of most concern, with their high-energy ads, distracting visuals and hard-to-read disclaimers. Services that seek to trick consumers into signing up for expensive, ongoing subscription services by asking them to respond to a quiz or offer should have no place in a company that values its customers.

Likewise, providers of so-called unlimited calls are failing to adequately disclose a host of qualifications, exemptions and fees that make a mockery of their claimed monthly fees.

For customers to have confidence, service providers need to ensure the consumer can make informed decisions about the services they buy.

As part of its submission to the development of a Mobile Premium Services Industry Code, the ACCC has called for far greater automatic protection for mobile customers. They should also be able to block their accounts from receiving any premium content. Or to have such services barred by default unless specifically requested.

To those who mislead about costs, connection speeds or the nature of the services, the ACCC strongly advises you to start taking customer service seriously or your industry will suffer the consequences.

It's time for the telecommunications industry to rein in its rogues