Telecommunications carriers could be fined up to AU$250,000 if they slam consumers, under a new code of practice to be controlled by the Australian Communications Authority.
Slamming refers to the unauthorised transfer of a customer from one telecommunications supplier to another, often by unethical door-to-door sales tactics that include tricking customers into signing transfer forms.
"Slamming is one of the most significant complaints the TIO (Telecommunications Industry Ombudsman) gets," an ACA spokesperson told ZDNet.
"It's a classic example of where a significant problem has arisen."
The TIO reports that 5,700 consumers were slammed between 1999 and 2000.
In the same period, "unauthorised transfers as a percentage of our telephony complaints was seven percent".
In the 2000 calendar year, this had increased to 13.7 percent, the TIO confirmed.
Under the Customer Transfer Code, if the carrier in question does not heed a warning from the ACA that it comply to the code of practice, the ACA has the power to impose penalties of up to AU$250,000.
"The code offers new safeguards for consumers transferring fixed services, mobile services and Internet services and will help to minimise complaints that have troubled the industry for some time," ACA chairman, Tony Shaw, said.
"It will also help ensure that transfers only occur with the customer's full knowledge and consent."
