Telco busted for unauthorised customer transfers

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Telco busted for unauthorised customer transfers

Queensland telecommunications provider Exceed Connect has been issued with a formal warning by the Australian Communications and Media Authority (ACMA) for transferring customers to another provider without consent.

ACMA found that Exceed Connect had transferred customers from Exceed Telecom after the latter company was placed in external administration in early 2015.

It found that Exceed Connect failed to obtain permission from customers before churning them to the new provider, as well as failure to provide them with sufficient information relating to the transfer.

Telcos are required to obtain permission from customers before transferring them to another provider, even in the case of an administration, under the Telecommunications Consumer Protections Code (TCP).

ACMA also found that Exceed Connect took customers back against their will when they attempted to transfer services to another telco provider.

Acting ACMA chairman James Cameron said it was important for telcos to inform their customers if there are any changes to their services.

“This is especially important when companies are undergoing a reorganisation and transferring their entire customer base to a new entity,” said Cameron.

Exceed Connect has been contacted for comment.

Earlier this month, ACMA, along with the Australian Competition and Consumer Commission, started legal proceedings against Sydney-based ISP SoleNet for churning customers without their consent.

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