TIO calls for fairer cancellation practices for telco consumers

TIO complaint insights show Australians are losing time and money, and experiencing emotional distress due to telcos’ poor cancellation practices.

In a Policy Position Statement released today, the TIO has called for 13 changes to make cancellations more accessible, transparent and consistent for consumers.

Consumers reported that cancellation barriers, such as requiring people to call to cancel, can be particularly difficult for shift workers, consumers with a disability, and people living overseas.

Consumers also told the TIO they found information about cancellation notice periods and final or additional charges unclear, or difficult to find. In certain cases, this led to unexpected costs that increased the risk of financial and emotional stress.

Pablo*, who contacted the TIO, tried to cancel his service online but was told he needed to call instead. Unable to cancel by email, his service remained active, and he was issued a bill with charges for his next billing period.

Requiring telcos to refund incorrect charges applied after cancellation when appropriate could help people like Pablo, and is one of the urgent changes the TIO is calling for.

This could help consumers like Andy* too, who despite cancelling his service, received a bill of nearly $6,000 when he returned home from living overseas.

The TIO strongly supports cancellation processes that are fair and accessible for all. This means providing consumers with the information they need to make informed decisions, removing barriers to cancellation, and offering fair remedies when things go wrong.

Read the full Policy Position Statement here.

*Names changed for privacy reasons.