‘Remember TPG’s $26.95/month ADSL plan that cost at least $42.85/month due to hidden data charges? Or Telstra’s ‘Broadband Amnesties’ in the face of complaints about unfair terms and conditions? Or ISP contracts forbidding customers from complaining to the Telecommunications Industry Ombudsman?’

A Working Committee for the Australian Communications Industry Forum (‘ACIF’) has released a new industry code that will have effect under the Telecommunications Act 1997 (Cth) to prevent unfair and deceptive consumer contracts for internet services. It purports to furnish additional rights upon consumers (and business) compared with those under the Fair Trading Act 1999 (Vic) and Trade Practices Act 1974 (Cth), as well as hefty government-imposed fines.

The Consumer Contracts Code (‘the Code’) will cover ISP dial-up and broadband contracts, as well as mobile and landline telephone agreements. After it is approved by the Australian Communications Authority, the code will be binding on all ISPs and telecommunications service providers, who will face penalties in the event of breach. The Code aims to objectively identify and prohibit unfair terms in such contracts while reducing legalese in consumer contracts (s 2.2) — admirable goals, to be sure.

Source: Tim Gaden, Whirlpool News