The Communications Alliance has voiced concerns over the Albanese Government's draft Scam Prevention Framework (SPF), warning that it could leave telecommunications companies facing legal action under multiple regulatory codes.
The peak body is calling for urgent amendments to the framework to protect telcos from what it terms "quadruple jeopardy".
Communications Alliance chief executive Luke Coleman argues that the proposed framework would subject telcos to overlapping enforcement from the Australian Competition & Consumer Commission (ACCC), the Australian Financial Complaints Authority (AFCA) and potential legal challenges through the courts.
"If a telco complies with the industry code, it should have safe harbour from enforcement under the three other avenues of liability," Coleman said.
The submission highlights concerns over the complexity of identifying which telco carrier in the communication chain is responsible for a scam-related incident, which could expose companies to multiple penalties.
The framework, as it stood, could unfairly penalise telcos that had been combating scams for years, Coleman added.
Furthermore, the Communications Alliance is advocating for a clearer regulatory structure, arguing that adding additional layers of oversight could result in conflicting responsibilities.
While supporting expanded scam regulations across sectors, Coleman stressed the need for a "single regulator with clear jurisdiction" to avoid regulatory overlap.
Take immediate action on scams
In contrast, AFCA chief executive David Locke urged large banks and telcos to take immediate action on scams without waiting for regulatory mandates.
Under the SPF, companies could face fines of up to A$50 million for failing to prevent scams.
FinTech Australia, in its submission, recommended batch reporting of scam data rather than real-time reporting to reduce compliance burdens.