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Highlights
- Telcos face regulatory risks under the proposed Scam Prevention Framework.
- The Communications Alliance seeks clearer protections for telecom companies.
- Concerns raised about overlapping enforcement from multiple agencies.
The Communications Alliance has raised concerns about the Albanese Government's proposed Scam Prevention Framework (SPF), warning that telecommunications companies could be exposed to legal risks under multiple regulatory codes. The peak industry body is calling for urgent changes to the framework to avoid what it describes as "quadruple jeopardy" for telcos.
According to Communications Alliance chief executive Luke Coleman, the current draft of the SPF could subject telecommunications companies to enforcement actions from multiple regulatory bodies, including the Australian Competition & Consumer Commission (ACCC), the Australian Financial Complaints Authority (AFCA), and potential legal challenges through the courts. Coleman emphasized that telcos complying with the industry code should be shielded from these overlapping liabilities.
The submission from the Communications Alliance also highlights the complexity of determining which telecommunications carrier is responsible for a scam-related incident. This could expose telcos to multiple penalties for the same issue, despite their longstanding efforts to combat scams.
The Alliance is advocating for a more streamlined regulatory approach, stressing the need for a single regulator with clear jurisdiction to prevent conflicting oversight responsibilities. While supporting the overall aim of expanding scam prevention across sectors, the group warns that the current framework could lead to unnecessary regulatory burdens.
In contrast, other voices, such as AFCA chief executive David Locke, are urging large banks and telcos to take immediate action to combat scams, regardless of regulatory requirements. The framework, as it stands, could impose fines of up to A$50 million on companies that fail to prevent scams.
FinTech Australia, another key stakeholder, has suggested batch reporting of scam data rather than real-time reporting to ease the compliance burden on companies.
The Communications Alliance is pushing for amendments to ensure that telecommunications companies are not exposed to multiple legal actions, while also supporting a more efficient regulatory structure to tackle scam-related issues.
