ACMA warns Crunch Tel over transferring customers without consent

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ACMA warns Crunch Tel over transferring customers without consent

The Australian Communications and Media Authority (ACMA) has formally warned Melbourne-based telco Crunch Tel for transferring customers to its service without their consent.

In October 2016, the assets of Crunch Networks Pty Ltd were sold to Crunch Tel after it went under administration, with 408 customers transferring to Crunch Tel the process.

The ACMA, however, found that neither Crunch Networks nor Crunch Tel contacted customers to obtain their consent, to let them know what was happening or to 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 ACMA chair Nerida O’Loughlin.

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

She added that the findings would serve as a reminder to all telcos of their obligations under the Telecommunications Consumer Protections Code regarding transfers and other important consumer protections.

The code includes rules on what providers must follow when transferring customers, including when transfers happen as part of a sale of a service provider’s business to another.

CRN has reached out to Crunch Tel by phone and email.

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