TIO Annual Report 2006/07

Systemic Complaints (Overview)

This is a selection from the eight systemic complaints completed this year. To view all systemic investigations please download the full PDF version of the 2006/07 Annual Report from here.

Optus Mobile - Billing of “$79 Cap” plan

Complaint

The TIO received several complaints from customers who had subscribed to Optus Mobile’s “$79 Calls” plan. The plan offered $500 worth of voice and text calls each month for $79. However, customers said Optus’s invoices were confusing and it was not clear whether the requisite credits under the plan had been applied. They could not monitor their usage; hence some customers exceeded the cap and faced substantial charges.

The TIO was concerned that the bills themselves were confusing. In the course of the investigation, the TIO considered several potential breaches of the industry Billing Code. The TIO also expressed concern that the promotional material for the $79 cap was difficult to reconcile with the fees and charges that customers were subsequently billed.

Resolution

Optus resolved the complaints by cancelling the mobile contracts without penalty, on condition that complainants return their handsets. Optus advised that the billing concerns highlighted by the TIO largely referred to customers who had contracted to capped plans before December 2005. Those who had signed up after that date received invoices that were clearer. Optus also said that from April 2007 a new billing platform, which would produce much clearer invoices, would service all capped plan customers.

The TIO expressed concern that Optus’s billing system did not allow customers to monitor their unbilled call spend and Optus verified that this, too, would be remedied by the new billing platform. Notwithstanding the improvements that the new platform was scheduled to introduce, the TIO advised Optus that it would investigate any future complaints from mobile users about the same issues and it recorded breaches of Clauses 6.3.1(c) and 7.3.1(b) of the Billing Code.

West Australian Networks - Billing of complaint-handling fees

Complaint

A consumer complained that West Australian Networks (WAN) was charging him more than the agreed rate for his broadband service. The TIO commenced an investigation and in response WAN billed the complainant more than $200 for lodging a “frivolous” complaint with the TIO.

It was revealed that WAN had provided for the passing on of complaint handling fees in its acceptable use policy (AUP). The TIO was concerned that the inclusion of the term may be a breach of several industry codes and may also breach Commonwealth telecommunications and trade practices legislation. The TIO therefore considered potential breaches of the industry Complaint Handling Code and Consumer Contracts Code as part of its investigation.

Resolution

WAN agreed to remove from its AUP the clause providing for the passing-on of complaint handling fees. WAN also agreed to remove the charge from the complainant’s account to resolve this aspect of his dispute. The TIO concluded that the term of the AUP which permitted the charging of complaint handling fees would constitute an unfair contractual term. Breaches of Clause 7.4.1 of the Complaint Handling Code and Clause 6.1.1 of the Consumer Contracts Code were therefore recorded.

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