Australian regulator ACMA reprimands Telstra for overcharging A$2.5mn

ACMA Telstra ovecharging
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The Australian Communications and Media Authority (ACMA) has directed Telstra to comply with its billing accuracy obligations after an investigation found it had overcharged more than 10,000 customers a total of almost $2.5 million over a 12-year period.

The overcharging, averaging of $231 per customer, occurred between February 2008 and February 2020 when customers were provided with an interim service (usually a mobile phone) during delays to their connection or repair of landline services.

Telstra self-reported the issue to the ACMA and explained that the billing error resulted from mistakes made when introducing a new customer relationship management system in 2008.

ACMA Chair Nerida O’Loughlin said the errors were a clear breach of the Telecommunications Consumer Protections (TCP) Code.

“The amount charged for an interim service must not exceed what a customer would have been charged under their existing or requested landline service.

“Overcharging can potentially lead to financial difficulties for affected customers which is why the ACMA considers accuracy in billing practices to be an important consumer protection.

“Australians should have confidence that they will not be overcharged for their telco services, helping them to effectively plan for and manage their household budgets. 

“For Telstra to allow an issue like this to go unnoticed for such a long time and impact so many customers, is simply unacceptable,” she said.

Ms O’Loughlin also reminded telcos that they must have adequate systems in place to prevent these errors from occurring.

“If telcos are relying on IT systems to meet their regulatory obligations then they must have appropriate testing and assurance processes in place to ensure compliance,” she said.

The ACMA acknowledges that Telstra moved reasonably swiftly to fix the problem once identified. Telstra also took the appropriate steps to address the issue including refunding affected customers, and has committed to removing all ongoing charging for interim services to prevent the problem from occurring again.

Following the investigation, the ACMA has formally directed Telstra to comply with the TCP Code.

Any further non-compliance could lead to significant consequences for Telstra, with penalties of up to $250,000 for failing to comply with the ACMA direction to comply with the TCP Code.

Related article: Telstra given formal warning over excess usage notifications

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