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Submission to Treasury's Scams Prevention Framework - exposure draft legislation

Summary
The Telecommunications Industry Ombudsman today published its submission to the Scams Prevention Framework (SPF) draft legislation and Explanatory Materials.

While the TIO supports strong action to disrupt scams and protect consumers, the submission raises concerns about the Government’s proposed solution:  

  • Unclear dispute resolution and reimbursement: The draft doesn’t clearly explain how scam complaints will be resolved or how scam victims will be reimbursed for their losses, creating confusion, uncertainty and delay for consumers needing help.
  • Rushed consultation: There hasn’t been enough time to test and understand how the new policies will affect consumers.
  • Risk to telco consumer protections:  The approach will weaken the telco sector’s ability to understand and address consumer issues, which is essential for protecting consumers and maintaining trust.

The TIO recommends having one main access point for consumers to access external dispute resolution (EDR), while also ensuring the SPF supports a strong multi-EDR scheme model. This makes it easy for consumers to make a complaint and lets organisations handle the complex details to ensure fair outcomes.