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The Communications Alliance, representing the telecommunications sector, has called for changes to the draft Scams Prevention Framework (SPF) legislation. The group is seeking safe harbour provisions to protect telcos from what it describes as “quadruple jeopardy” liability under the current proposals.
Luke Coleman, CEO of Comms Alliance, emphasised that telcos have been proactive in combating scams. “Telcos have been at the forefront of the fight against scams, blocking more than 2 billion scam calls and nearly 700 million scam messages since 2020,” Coleman said. He highlighted that the industry already operates under a regulated code enforced by the Australian Communications and Media Authority (ACMA), which requires telcos to take action against scam calls and messages.
Multiple Enforcement Mechanisms
Under the draft SPF legislation, telcos could face penalties from up to four different enforcement bodies. These include the ACMA, the Australian Competition and Consumer Commission (ACCC), the Australian Financial Complaints Authority (AFCA), and the courts.
“If a telco complies with the industry code, it should be shielded from enforcement under the other three avenues of liability – the ACCC, AFCA, and civil action through the courts,” Coleman said. He stressed that this “quadruple jeopardy” could create unnecessary risks for telcos, even when they follow the rules.
Balancing Consumer Protection with Industry Liability
While Coleman supports the government’s ambition to reduce scams across all sectors, including banking and digital platforms, he believes the framework needs clearer protections for telcos. “Our proposed changes would make the framework more enforceable and flexible, while still protecting consumers without placing undue liability on the industry,” he explained.
Areas of Potential Liability
Under the current draft, telcos could face liability through:
- Sector regulation: The ACMA would register and enforce the industry’s SPF code.
- General regulation: The ACCC would continue to regulate the telecoms sector concerning SPF principles not covered by the code.
- External Dispute Resolution (EDR): The AFCA would act as the designated EDR body.
- Civil action: Consumers affected by scams could take legal action, including class actions.
Comms Alliance proposes that safe harbour should only be removed if a telco breaches the industry code, leaving it open to other forms of enforcement or compensation claims.
Positive Signs in the Fight Against Scams
Coleman pointed out that joint efforts between the government and the industry are starting to show results. “Financial losses to scams fell by 13 per cent between 2022 and 2023, while the median amount lost dropped by 50 per cent. Reporting of scams has also increased by over 18 per cent,” he said, adding that the telecommunications industry continues to fight scammers with technical measures and awareness campaigns.
Strengthening Technical Measures
Comms Alliance has also called for stronger technical measures to support the SPF. These include the accelerated introduction of the SMS Sender ID Registry and reforms to telephone number rights. “The telecoms industry has already put in place several technical measures to combat scams. The new SMS Sender ID requirements will prevent scammers from impersonating legitimate entities like banks or toll road operators when sending messages to consumers,” Coleman said.
The organisation also wants the legislation to clarify that scam-related consumer complaints should only be handled by AFCA, to avoid duplication of complaints to other bodies, such as the Telecommunications Industry Ombudsman (TIO).
About Communications Alliance
Communications Alliance is the primary body representing Australia’s telecommunications sector. Its membership includes carriers, internet service providers, content platforms, equipment vendors, and IT companies. The group’s mission is to create a collaborative environment that encourages sustainable development and growth in the industry, while ensuring high standards of business behaviour.
For more details about Communications Alliance and its initiatives, visit the organisation’s website.
Last Updated on October 10, 2024 by Nick Ross
