Australian consumers unhappy with
phone contracts – ACA research
Difficulties with phone contracts featured strongly in recent consumer
research undertaken by the Australian Communications Authority (ACA).
In the research, conducted in the first half of 2004, the ACA surveyed
more than 1,000 small businesses and residential households about their
information needs and expectations as consumers of telecommunications
products and services.
ACA Acting Chairman Allan Horsley said the research showed that people
experienced difficulties with both fixed telephone and mobile phone contracts.
“Small businesses and households found contracts to be too long
and difficult to understand,” he said.
“Consumers said it was unfair that providers were able to alter
the terms and conditions of the contracts after sign-up. Unexpected charges
hidden in the fine print, such as high cancellation fees were also raised
as an issue.
“The survey also found that consumers were concerned about being
locked into a lengthy contract, which meant they were unable to take advantage
of better offers.”
The ACA research was conducted in two stages. In the first stage, face-to-face
interviews were held with 68 small businesses and 139 residential households.
The second stage consisted of telephone interviews with 450 small businesses
and 450 residential households.
“The ACA has recognised for some time the inadequacies of many phone
contracts and this research has reinforced our view,” Mr Horsley
said.
The ACA has asked the Australian Communications Industry Forum (ACIF)
to develop a contracts code. The code should require contracts to be fair
and provide guidance about fair and unfair contract terms.
A draft of the code has been completed and ACIF has made it available
for public comment. The ACA encourages comments to be submitted to ACIF
by Friday 5 November 2004. More information is available on the ACIF
website or contact ACIF on (02) 9959 9111.
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