Too many Australians are still being sold phone and internet plans that they can’t afford, don’t understand or never asked for.
The Fair Call Coalition, which includes 23 peak consumer bodies, says the current industry-led rules for sales have failed and direct regulation is now essential.
Research commissioned by the Australian Communications Consumer Action Network (ACCAN) reveals nearly one in four people felt pressured into signing up for more expensive plans. Meanwhile, the Telecommunications Industry Ombudsman continues to report that poor sales practices are one of the most widespread systemic issues under investigation.
Despite repeated calls for reform, telcos continue to rely on sales tactics that prioritise profits over people. ACCAN CEO Carol Bennett said, “We’ve seen repeated examples of vulnerable Australians being signed up to products they can’t afford or don’t need.”
She added that “Sales targets and commission-based bonuses have no place in essential services like communications.”
The issue is not isolated to one provider. Legal action launched by the Australian Competition and Consumer Commission (ACCC) against Optus highlights alleged misconduct involving First Nations customers, people with disability and low-income households. Just a few years earlier, Telstra was fined $50 million over similar practices.
Read more: New TIO data highlights communication breakdowns in mobile coverage and service reliability
At the core of the problem is a commission-based sales model that rewards staff for upselling, often leading customers into long-term financial stress. This model mirrors the one criticised by the banking Royal Commission and is still present in telecommunications today. It is particularly harmful in remote areas, where access is limited and language barriers make informed decision-making harder.
“Many remote First Nations consumers have few other options than mobile phone services for communication and internet access,” said Carolyn Cartwright, Managing Director of MoneyMob Talkabout. “Language and geographic barriers increase their vulnerability to the unfair sales practices that we continue to see from telcos.”
These issues also play out on social media, where ads for enticing but unclear plans often target vulnerable communities. Without stronger consumer protections, these platforms can further enable misleading promotions.
Frontline services echo these concerns. WestJustice CEO Melissa Hardham said, “It is also essential more is done to ensure people are not trapped in phone and hardware deals that don’t meet their objectives and that they can’t afford.” She stressed that fair access to telco services can bridge digital and educational divides—when done right.
With the Telecommunications Consumer Protections (TCP) Code under review, advocates argue it’s time for the government to step in. As Stephanie Tonkin from Consumer Action Law Centre put it, “It’s time to introduce an enforceable standard for sales practices.”
Consumers deserve access to communications services that support their lives, not sales tactics that exploit them.
Adrianne Saplagio is a Content Producer at Comms Room, where she combines her passion for storytelling with her expertise in multimedia content creation. With a keen eye for detail and a knack for engaging audiences, Adrianne has been instrumental in crafting compelling narratives that resonate across various digital platforms.
