Sprint Telco fined for acting as Telstra

The ACCC has fined Sprint Telco for allegedly stating it was acting on behalf of Telstra when it transferred a customer to its service.

Phone and internet provider Sprint Telco has been fined $10,800 for allegedly tricking a consumer into believing it was an agent for Telstra and transferring them to its own service.

The Australian Competition and Consumer Commission (ACCC) issued the infringement, saying it had grounds to believe Sprint Telco pretended to be a Telstra agent as part of a sales pitch during a telemarketing call in 2016, when it transferred a consumer's account from Telstra to its service.

"Unauthorised transfers can result in unexpected costs to consumers such as early termination fees, cancellation fees, loss of discounts from bundling services and costs to reconnect with their original provider," ACCC acting chair Delia Rickard said.

According to the watchdog, traders seeking to transfer consumers without consent will often create the impression that they are calling from the consumer's existing provider.

The ACCC and the Australian Communications and Media Authority (ACMA) say they have identified unauthorised transfers as a "recurring problem" in the telecommunications industry.

An ACMA spokeswoman said the number of providers who transfer customers without consent is generally small, but there is a significant impost on the customer.

"Consumers are entitled to make informed decisions about their choice of service provider," Ms Rickard said.

"The ACCC will continue to act where consumers are switched, or attempted to be switched, from one telecommunications service provider to another without their express knowledge or informed consent."

The consumer watchdog said measures such as recording entire sales conversations would help stamp out unauthorised transfers.


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Source: AAP



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