How we’re supporting our First Nations Customers
Supporting our First Nations customers is a priority and at the heart of how we approach our work at Telstra. We acknowledge that we have failed in the past, with the improper conduct of our licensees mis selling to our First Nations customers and our failure to pick this up and address it quickly. This led to a major review of our sales practices and systems, as well as changes to our compliance monitoring and reporting.
We have been on a journey to make things right for the First Nations customers we failed. Through our work engaging with customers and community, directly or indirectly, we continue to find customers who were the subject of past mis-selling through those licensee stores, and we continue to take action to remediate and compensate those customers as they are identified. We have also implemented significant changes to our business to minimise the risk of poor sales practices by addressing the systemic issues that led to these sales practices occurring, and we have implemented controls that we closely monitor to identify and address any mis-selling practices. We are committed to continuing to review these on an ongoing basis.
What happened?
Between 2016 and 2018, the ACCC found that a small number of Telstra licensee stores sold mobile phones and plans to some Indigenous customers that did not suit their needs and that they ultimately could not afford. The behaviour which led to this was unacceptable and we focused on making this right through extensive process changes and by rebuilding trust with First Nations customers and communities.
Following the investigation outcome in 2020, we offered an Undertaking to the ACCC which included a remediation program for 12 months to identify other impacted First Nations customers and paid a fine of $50 million.
That program has been extended beyond the 12 months and beyond the five stores and 108 customers originally named in the undertaking. We continue looking for and addressing historical cases of improper selling, including by providing remediation and compensation (for financial and non-financial impacts) regardless of when or where any improper selling has occurred.
At the time of the ACCC fine, we were already making some changes to close the gaps that allowed this to happen in the first place. We’ve made even bigger steps since then to change the conditions which created and made mis-selling possible in the first place.
How have we changed for the better?
We have put controls in place and changed processes to improve sales quality:
· Excess data has been removed from mobile plans to avoid extra charges.
· SIM only plans have shifted to month-to-month contracts (customers only need to commit to a 12, 24 or 36 month contract if they choose to repay a handset).
· Credit assessments are subject to higher standards that require more information from a customer to assess payment ability.
· Frontline staff servicing our customers in store and in our call centres must complete yearly cultural awareness training.
The improper selling occurred in our licensee stores and while they were licensed to sell our services, the stores were not owned by Telstra at the time.
To deliver a better customer experience we decided to buy back all licensee stores. Most of these were transitioned to Telstra stores with employees who undertake extensive mandatory training on responsible selling and First Nations cultural competency, which must be completed in order to access our systems.
We made changes to how we sell by removing individual sales targets and changing the way our people are incentivised. Stores now work towards a balanced scorecard of targets, and our employees are incentivised with meeting compliance requirements, and achieving positive customer feedback.
We also made sure that the stores named in the ACCC’s undertaking have specific restrictions in place on what and how they can sell so this doesn’t happen again and we made changes to our compliance monitoring and reporting across our broader store network to ensure early identification of any patterns of mis-selling.
We are committed to listening to our customers, and learning from our mistakes, so we get it right.
We have a dedicated First Nations hotline in Darwin with First Nations agents who have the right answers for our customers when they call. We have also recently opened two small call centres in Jumbun and Palm Island in Far North Queensland. These centres are locally owned and staffed with local First Nations people. Profits from these enterprises are directed back into community.
We committed to spend more time in community addressing any issues. The Community Check-In Bus (also known as the “Pink Bus”) visits remote communities, helping out with Telstra services.
The Community Check in’s also support customers with service issues, SIM card activations and replacements, handset upgrades, and Digital Inclusion workshops as well as providing information on some of our customer support initiatives such as payphone free calls and free WiFi.
If customer concerns about debt are identified, these concerns are referred to our specialist support team to provide support and remediate the customer where required. Our support team will review and take action including waiving debt, providing refunds, removing credit listings, or offering financial assistance support.
The Pink Bus visited over 150 remote communities and checked-in with over 19,000 customers across four states and territories since November 2019.
Financial counselling services have a big role in helping people who are doing it tough. This includes helping customers that have purchased services or products that don’t suit their needs or budget. We have a positive relationship with most financial counsellors.
Our dedicated Specialised Assistance Team supports customers experiencing financial hardship. Financial counsellors work closely with the team to find the appropriate treatment that works for our customers.
Financial counsellors are provided with a toolkit including contact details, relevant information, and financial assistance treatments for clients.
We have established a framework for compensation (beyond remediation) and an escalation path with the Telecommunications Industry Ombudsman where the customer or financial counsellor dispute our offer for compensation.
We also fund a program for financial counsellors to visit remote communities to help us uncover improper selling or financial hardship cases.
We understand that anyone can find themselves in vulnerable circumstances at any time. That’s why we have a range of options for people in need of financial assistance.
Customers can discuss long-term assistance with us like flexible payment arrangements and short-term holds on their accounts, as well as reviewing their services to check they are on the best value plan for their needs.
In FY23 alone we supported over 1.2 million customers in vulnerable circumstances through a range of products, services and programs, contributing over $93 million of value through social and community investment.
Head to Telstra.com to find out more.