Queensland-based telecommunications provider Exceed Connect Pty Ltd has been formally warned by the Australian Communications and Media Authority (ACMA), after transferring customers to another provider without consent.
According to a release from the ACMA, the breaches occurred when the customer base of Exceed Telecom Pty Ltd was transferred to Exceed Connect in the first half of 2015 after the company was placed in external administration.
During that time, the ACMA became aware that the customer base of Exceed Telecom had been transferred to Exceed Connect, and Exceed Telecom placed under external administration.
As such, the ACMA requested information from Exceed Connect but initially received no response.
In highlighting the experience of nine customers in particular, the ACMA consequently found Exceed Connect had “failed to obtain the required consent to transfer them from Exceed Telecom”.
Officially speaking, the telco was found in breach of the Telecommunications Consumer Protections Code 2012 (the Code), specific to Chapter 7 of the Code which sets out supplier obligations when customers change telcos, including in the event of the sale or transfer of business operations of a supplier.
In addition, ACMA findings claim that required information relating to these transfers was not supplied to the customers - under the Code, details about the new supplier and the transfer process must be made available.
“Suppliers need to ensure that their customers understand what is happening to their service, particularly who is providing it to them,” ACMA Chairman James Cameron said.
“This is especially important when companies are undergoing a reorganisation and transferring their entire customer base to a new entity.”
Cameron said further breaches occurred when some customers then attempted to transfer services away from Exceed Connect to their preferred supplier but were taken back by the company against their will.