Twelve telcos risk court action and $250k fines

The Australian Communications and Media Authority has handed 12 telcos their last chance to comply with consumer protection rules, before they face fines of up to $250,000 each.

The watchdog announced that the offenders had failed to submit annual documents relating to their compliance with the Telecommunications Consumer Protections Code. All had been previously warned, with ACMA now escalating its action to "direction to comply".

Court action and heavy fines can follow if the companies do not respond to this latest action.

"If the provider fails to comply with such a direction, the ACMA can issue an infringement notice, accept an enforceable undertaking or commence Federal Court proceedings for orders — including the imposition of a pecuniary penalty of up to $250,000," said a statement from ACMA.

The 12 firms handed directions to comply are HomeLinX, iTalk, Max Telecom, Netbay Internet, Oz Talk, Pivit, Aussie Dial, Vocaltone Networks, Reeds Internet and Telecom, Spinktel, E-Tel  and David John Esmonde.

For some companies this is the second time they've failed to lodge the mandatory paperwork.

"It is disappointing that a small number of providers have yet to take their obligations seriously," said Chris Chapman, chairman of ACMA. "In our experience, telcos with a genuine commitment to customer care embed a customer-centric approach and a culture of compliance."

It comes after ACMA yesterday revealed it had rapped major IPS iiNet and Dodo over their conduct in direct debit billing.

"These directions by the ACMA send a strong message to industry players who continue to flout code rules."

Every communications provider in Australia is required to submit documents each year relating to its compliance with the TCP Code. The submission must be made to the industry compliance authority Communications Compliance by the start of April.

In July, ACMA stated that 331 telcos had lodged the required paperwork, up from 225 in 2013. Last month the industry body handed formal warnings to 39 companies for failing to submit the documents the first time.