Preliminary research commissioned by the Australian Communications Consumer Action Network (ACCAN) has revealed widespread anti-consumer practices by telco companies and deep mistrust in the telecommunications industry as a result
The polling, conducted as part of the first tranche of ACCAN’s consumer sentiment research, found that 41 per cent of consumers have limited faith in their telco to act in their best interest due to practices detrimental to their welfare.
In particular, 24 per cent shared that they felt pressured into signing up for a more expensive plan than they wanted while 32 per cent received different coverage than they were led to expect by their telco. Meanwhile, 39 per cent experienced unexpected changes to their contract
“Given the poor treatment many consumers have experienced at the hands of their telco, it is no surprise that trust is in the doldrums,” said ACCAN CEO Carol Bennett. “This research shows yet again that deceptive sales, misleading conduct, and poor customer outcomes are not the exceptions – they’re the shared experience of far too many Australians.”
The preliminary figures support long-standing concerns from consumer advocates, community sector and the ACCC that telco sales practices often exploit consumer vulnerability and confusion, particularly around plan complexity and coverage.
“These issues are not just frustrating – they can be financially and emotionally harmful,” Bennett added. “They also speak to a bigger problem: a lack of accountability in a sector that has outgrown the outdated self-regulatory framework.”
This latest insight builds on ACCAN’s recent campaign efforts to bring about change in the telco sector, including the Fair Call Campaign which calls for stronger, enforceable rules in the telco sector. ACCAN has also welcomed the Enhancing Consumer Safeguards Bill, currently progressing through Parliament, as a long-overdue step toward real consequences for telcos that mislead or mistreat customers.
“Trust in the telco industry is fractured. That trust will not be rebuilt through voluntary codes and industry-written rules. We need binding obligations, meaningful penalties, and a consumer-first approach to regulation,” Bennett said.
ACCAN has urged the Australian Communications and Media Authority (ACMA) and the Federal Government to prioritise consumer interests and a reduction in harm as the key touchstones in their decision-making.
“Telecommunications is an essential service. Telcos need to be properly regulated and held accountable for the provision of quality accessible services without exploiting or harming consumers,” Bennett concluded.
