ACMA Warns Crunch Tel on Transferring Customers Without Consent

Australian Communications and Media Authority - the ACMA has formally warned Telecommunications service provider, Crunch Tel Pty Ltd, for transferring customers to its service without their consent.

The Telecommunications Consumer Protections Code contains the rules that providers must follow when transferring customers—including when those transfers happen as a result of one service provider selling its business to another.

In October 2016, 408 customers were transferred from Crunch Networks Pty Ltd to Crunch Tel as part of the sale of the supplier’s business assets. However, neither Crunch Networks (now under external administration) nor Crunch Tel contacted customers to obtain their consent, let them know what was happening or inform them of their termination rights.

‘Customers have the right to know that they are being transferred between service providers and must consent to that transfer prior to it taking place,’ said Australian and Communications Media Authority Chair, Nerida O’Loughlin.

‘It is unacceptable for a telco to notify its consumers that their services have been transferred after the event.

‘While this investigation focussed on Crunch Tel’s failures, its findings serve as a reminder to all telcos of their obligations under the Code regarding transfers and other important consumer protections,’ Ms O’Loughlin said.