Telcos are main offenders under Do Not Call law

ACMA today revealed that more than half of all complaints about illegal telemarketing calls relate to phone plan offers.

‘ACMA has embarked on a campaign to improve telecommunications compliance that includes formal investigations, warnings, detailed letters putting individual providers ‘on notice,’ and an industry newsletter specific to the telco industry which provides practical advice about adhering to compliance requirements.’

A growing list of Aussie telcos has already been on the receiving end of ACMA’s attention.

Who’s on report so far ?

Since the Do Not Call Register Act took effect on 31 May 2007:

• Dodo was hit by a $147,400 penalty in October 2008.
• Dodo has submitted to an Enforceable Undertaking about its future behaviour.
• Astron Communications has submitted to an Enforceable Undertaking.
• People Telecom has submitted to an Enforceable Undertaking.
• Global Telelinks has received a formal warning.
• Ezycall has received a formal warning.
• m8 Telecom has received a formal warning.

What goes wrong ?

The main problem seems to be commission sales arrangements.  A telco engages a telemarketer / agent / ‘reseller’ to push the brand, and before you know it an incentive-crazy sales force is dialling anyone anywhere and saying anything.

Problem is that the Act often sheets home responsibility for third party behaviour to the telco that’s behind the deals.

Hence ACMA Chairman Chris Chapman’s comments today:

‘I strongly urge businesses at every level of the telecommunications marketing chain to take responsibility for their Do Not Call compliance.’ 

‘ACMA will continue to seek an environment of accountability in the telecommunications industry when it comes to Do Not Call compliance. Where reselling arrangements exist, we are looking for companies at the top end of the marketing chain to take a lead role in insisting on high standards of compliance amongst the businesses that depend on them.’