The Australian Communications Authority has issued a formal warning to five errant ISPs who have failed to join the Telecommunications Industry Ombudsman (TIO) scheme.
As the peak telecommunications industry regulation body, the ACA is responsible for enforcing breaches of the TIO scheme when service providers fail to join.
According to the ACA's Chairman, Tony Shaw the notice has been issued to advise the ISPs that if they fail to join the scheme they will face legal action.
"The Act explicitly requires suppliers of Internet access to join the TIO scheme and if the five internet service providers do not join the scheme within seven days the ACA will force compliance by issuing directions under section 102 of the Act or commencing legal proceedings in the Federal Court to recover pecuniary penalties."
If the case goes to court the ISPs, who have not been named by the ACA, could face fines of up to $50,000 for individuals or $10 million for incorporated businesses.
Under the Telecommunications Act all ISPs are obliged to join the TIO scheme which monitors consumer complaints about telecommunications carriers. If ISPs do not join the Ombudsman cannot hear rulings against them. The ACA warning to the ISPs is the second such ruling with some portions of the ISP industry objecting to the TIO scheme.
ISPs who join the TIO scheme are obliged to pay fees to the TIO if complaints are made against them, a structure that has not made the Ombudsman's office popular with some smaller ISPs. However, according Shaw, the Ombudsman is essential to providing protection to consumers in the ISP market.
"It is important that residential and small business customers who use the Internet have an adequate level of consumer protection and that Internet service providers comply with the Act."
