FAIRER CONTRACTS FOR AUSTRALIAN CONSUMERS

13 April 2004
46/04

I support today's call by the Australian Communications Authority (ACA) for the telecommunications industry to move quickly on a code of practice to ensure fairer consumer contracts.

I have already made it clear that the Government expects the industry to develop an effective code without delay in the interests of protecting consumers.

Concerns have been raised about the fairness of some contracts currently offered to residential and small business customers by telecommunications service providers.

Common complaints include that some contracts lack transparency, are too long and complex for consumers to understand and that they contain unfair terms that are biased in favour of the service provider.

A recent report from the Communications Law Centre (CLC) also expressed concerns about the fairness and transparency of some contracts in telecommunications as well as the level of compliance with the existing guideline on consumer contracts.

This is an important issue. It affects the majority of Australians and I'm keen to have it resolved sooner rather than later.

The co-regulatory arrangements under the telecommunications legislation allow the ACA to request the industry to develop a code where it is unlikely that a code will be developed within a reasonable period and the code would provide appropriate community safeguards.

In light of the ACA's request, I expect the telecommunications industry to give the highest priority to development of such a code to protect Australian consumers.

I have also asked the ACA to provide me with some advice on what plans and options are available to the Government if the industry does not give the code the priority it deserves.


Media Contact: Carina Tan-Van Baren (02) 6277 7480 or 0439 425 373