Newsbriefs

• TIO Position Statements on the Extension of Unlimited Credit and Over-Commitment
• Mobile Commerce Regulation and the Regulation of Premium Rate Services
• Online Alternative Dispute Resolution
• Telecommunications and Financial Hardship Issues
• AGM and Board Elections
• Staff Changes at the TIO
• TIO Position Statements

TIO Position Statements on the Extension of Unlimited Credit and Over-Commitment

The TIO commonly investigates billing complaints where the complainant has been billed for an uncharacteristically high value of telephone calls or internet charges, and finds themselves in a position of over-commitment.

Over-commitment by consumers of telephone services most often arises as a result of calls to third-party services, including 190X premium rate services and other services accessed via an international prefix, but may also arise through calls to ordinary long distance and mobile numbers, and as a result of excess internet usage charges.

The TIO has recently developed position statements that outline the TIO’s approach to cases of financial over-commitment due to the extension of unlimited credit by a telecommunications provider. The first deals specifically with premium rate services while the second deals with over-commitment arising via other means.

Generally speaking, where a consumer brings a complaint to the TIO about a bill(s) for an uncharacteristically high value of telephone calls or Internet charges, the TIO will consider investigating depending on the individual circumstances of the complaint. In each and every case the TIO will consider the law, good industry practice and what is fair and reasonable in all the circumstances and having regard to a number of relevant factors.

View the TIO’s position statements on the Extension of Unlimited Credit and Over-Commitment

Mobile Commerce Regulation and the Regulation of Premium Rate Services

The TIO has provided the Australian Communications Authority with a response to its Mobile Commerce Regulatory and Policy Outlook Discussion Paper, with particular reference to:

• The issues of extension of unlimited credit
• Fraud and stolen mobile phones
• Customer dispute resolution considerations and TIO jurisdiction

The TIO has also provided the ACA with a response to its discussion paper regarding the need for additional regulatory measures in relation to the supply of premium rate services.

Anyone interested in the TIO’s submissions on this matters can contact the TIO on 03 8600 8700 or tio@tio.com.au.

Online Alternative Dispute Resolution

In the 2002/03 financial year less than 5% of complaints to the TIO were lodged electronically – via email or over the Internet. In the year before that less than 3% of complaints were lodged in this manner. More than 90% of consumers chose to lodge their complaint over the phone.

With this in mind, it is interesting to note that a number of Australian and international consumer complaint bodies are giving serious consideration to online ADR as an alternative to existing face-to-face or over-the-phone dispute resolution methods.

The Department of Justice Victoria recently commissioned a three-part research project about online alternative dispute resolution, or online ADR, with a view to determining whether online ADR could be incorporated into the services currently offered by the Department to Victorians. The International Conflict Resolution Centre at the University of Melbourne undertook the study.

Online alternative dispute resolution involves moving traditional modes of ADR, including complaint handling, arbitration, mediation, facilitated negotiation and negotiation support, into an exclusively online setting.

Online ADR services have been readily available since 1996 in North America, and Europe and Asia have experienced a rapid increase the availability of such services in recent years. The first Australian online ADR site was launched in 2002. National bodies investigating or promoting the use of online ADR in Australia include the Australian Law Reform Commission, the Consumer Affairs Bureau and the Department of the Treasury (Cwth). The New South Wales Retail Tenancy Unit permits various preliminary exercises to be undertaken online prior to the face-to-face mediations between the parties.

The benefits of increased access, reduced costs and concerns about consumer protection in a borderless marketplace appear to be encouraging the development of online ADR in Australia. At the same time, access to minimum hardware and software support, accessibility to ADR sites by people with disabilities and barriers imposed by language and comprehension, may place limitations on its widespread use.

Anyone interested in the study can contact Ms Elisabeth Opie, Editor-in-Chief of the Vindobona Journal of International Commercial Law and Arbitration via email at eopie@maa.net

Telecommunications and Financial Hardship Issues

On 23 October 2003 the TIO and ACA co-hosted an industry roundtable on Credit Management and Hardship Issues. Six major telecommunications providers – Telstra, Optus, Vodafone, Primus, AAPT and Hutchison – attended and provided advice regarding regulatory, credit management and customer relations practices.

The ACA and TIO have become concerned in recent months at the upward trend in complaints recorded by the TIO in relation to credit management matters. While a number of factors have contributed to the growth in complaint statistics, the handling of hardship customers has been an area of particular concern.

In an attempt to contextualise this issue, the ACA commissioned a report from Kildonan Child and Family Services, a welfare agency operating in the northern suburbs of Melbourne, on the experiences of their financial counsellors in dealing with telecommunications companies. The report confirmed that the telecommunications industry’s treatment of financial hardship cases is an issue that needs to be addressed.

The key outcome of the forum was a recognition by the telecommunications industry of the need to develop and commit to a set of principles which will guide industry participants in sustaining relationships with customers suffering hardship.

AGM and Board Elections

The TIO conducted its Annual General Meeting at the Crowne Plaza in Sydney at 10 AM on 4 December 2003. The meeting was preceded by a General Meeting of ISP Members and a General Meeting of non-ISP Members (excluding Telstra, Optus and Vodafone) to elect Board Members from those constituencies.

Staff Changes at the TIO

Enquiry Officer Amanda Bradford left the TIO in June to take up a role as an investigator with the Australian Securities and Investments Commission (ASIC). Legal Investigation Officer, Shirley Quo, left in August to work in academia. Amanda and Shirley will both be sorely missed by the TIO. We wish them all the best in the future.

In July, Stephen Kinna and Kate Lawler commenced as Enquiry Officers, and Administrative Officer Brea Acton commenced as a casual Enquiry Officer filling in on the phones when required. Stephen came to the TIO from Transurban and Kate was formerly working in paralegal roles.

Enquiry officers Danny Whelan and Chris Jensen were the successful applicants for two new Investigation Officer positions and commenced in their new roles in August.

In November, Monica Clements began acting as Quality and Training Officer while Carrie Liddle takes 12 months leave.

Maria Chapman and Jillian Beveridge also commenced at this time as Legal Investigation Officers. Maria has recently returned to Australia from the UK where she was in-house counsel for McMillan Cancer Relief. Jillian was formerly employed by the Office of Public Prosecutions.

TIO Position Statements

A reminder that TIO Position Statements on a wide range of issues are available. We welcome any comments or feedback.

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