TIO Annual Report 2006/07

Resolving complaints - what is fair and reasonable?

The TIO is an alternative dispute resolution (ADR) body. Alternative dispute resolution is a means of settling a dispute outside a courtroom. Trying to settle disputes through the courts can be difficult, time-consuming and costly. ADR is a more accessible and informal way of resolving a complaint.

The TIO’s role is to help consumers and telecommunications companies resolve complaints together.

The TIO investigates complaints by considering the facts provided by both parties – that is, the individual or business with a complaint, and their telephone or internet service provider. When the TIO helps to resolve complaints it considers not only the law and good industry practice but also what is fair and reasonable in all the circumstances.

The TIO stays independent of both parties at all times and does not take on a consumer advocacy role.

Determinations and directions

Where a complaint cannot be conciliated so that a fair and reasonable outcome is achieved the TIO has the power to make a “determination” or a “direction” that is binding on the member but not on the complainant. At Level 4 the TIO’s binding powers are limited to determinations or directions to the value of $10,000. In late 2005/06 the maximum value of Level 3 determinations or directions was increased from $400 to $1,200.

While determinations and directions are binding on members, complainants can elect to accept or decline them. However, after the TIO has made a determination our investigation is complete and the complaint is closed.

In addition to binding decisions, the TIO can make non-binding recommendations to members, provided that these do not exceed $50,000. Members should give consideration to the TIO’s recommendations and provide a response. The TIO outlines in its annual report instances where members have not followed through with TIO recommendations. However, in the 14-year history of the TIO, non-binding recommendations have been rare and none has been rejected.

In 2006/07, 56 complaints were raised to Level 4 and 46 Level 4s were completed.

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