Putting People Before Profit — Why Telco Sales Must Change
Australia’s leading consumer advocates are calling time on the broken telco sales system. The Fair Call Coalition, a powerful alliance of 23 consumer bodies including the Indigenous Consumer Assistance Network (ICAN), is urging the federal government to replace the telecommunications industry’s failed self-regulation model with clear, enforceable rules.
The call comes after shocking new research commissioned by the Australian Communications Consumer Action Network (ACCAN) revealed that nearly 1 in 4 Australians have felt pressured into signing up for more expensive phone or internet plans than they wanted. It’s a pattern that continues to harm some of the country’s most marginalised consumers – particularly First Nations people, those living remotely, people with disability and those on low incomes.
“People deserve telco services they can trust – not pressure, confusion, and debt,” said ACCAN CEO Carol Bennett.
The Cost of Commissions
At the heart of the problem is a commission-based sales culture that rewards telco staff for pushing high-value contracts – regardless of whether the customer can afford or even understand the product.
“Sales targets and commission-based bonuses have no place in essential services like communications,” Bennett said. “We need rules that ensure people are sold services they understand, can afford, and actually need.”
For ICAN, which supports First Nations consumers across northern Queensland, the issue goes beyond affordability – it’s about fairness, access, and cultural safety.
ICAN’s Experience on the Ground
“For our service users, imbalances of power, low literacy and numeracy will often lead to exploitation by predatory salespeople working on commission-based bonuses,” said ICAN CEO Aaron Davis.
“Telecommunication products are essential household items for people living in regional and remote communities. A lack of access to shop front services means that services can only be accessed by phone or the internet, which makes it even more critical that people are supported, not pushed into sales.”
ICAN’s own work in telco remediation highlights just how common these harms are.
“As an organisation currently involved in telco consumer remediation activities, I can say it really is in the best interest of telecommunication companies to ensure people understand what they’re buying and can afford it,” Davis added.
A Turning Point?
The Coalition’s call follows legal action by the ACCC against Optus for allegedly unconscionable conduct targeting vulnerable consumers, a stark reminder that Telstra was fined $50 million in 2021 for similar breaches.
While the Telecommunications Consumer Protections (TCP) Code is currently under review, ACCAN believes it won’t be enough without direct regulatory oversight.
“Self-regulation has failed to protect consumers – its chances have been exhausted,” Bennett said. “It is time to stem the tide of consumer harm by moving to direct regulation of sales practices.”
What’s Next?
The Fair Call Coalition is urging the new Minister for Communications, Anika Wells, to direct the Australian Communications and Media Authority (ACMA) to introduce mandatory rules that stop telcos from putting profits ahead of people.
At ICAN, we stand with the Fair Call Coalition in calling for a fairer, safer telco system – one that prioritises consumer wellbeing over commissions.
For more information or to get involved, visit www.accan.org.au .