Telstra Faces $10 Million Penalty for Breaching Customer Privacy

Telstra, one of Australia’s largest telecommunications companies, is facing a potential penalty of $10 million for breaching the privacy of its customers. An investigation conducted by the Australian Communications and Media Authority (ACMA) revealed that Telstra had published the names, addresses, and numbers of over 140,000 customers on more than 163,000 occasions. These customers had specifically requested their numbers to be unlisted or “silent” to protect their personal information from appearing in public directories.

The ACMA’s investigation found that most of these incidents occurred between 2021 and 2022. During this period, the unlisted numbers and personal details of some Telstra customers were published in the White Pages, a directory accessible both online and in print. Samantha Yorke, the consumer lead at ACMA, emphasized the seriousness of the issue, stating that Telstra’s failure to safeguard customer information put people’s privacy and safety at risk.

Telstra has acknowledged the gravity of the situation and has taken steps to address the breach. The affected customers have been notified about the remedies, and Telstra has attributed the release of unlisted numbers to system issues and procedural failures. The company has made significant upgrades to its systems through major software and technology improvements and conducts regular sweeps to identify any potential misalignments.

In response to the breach, the ACMA has set out specific requirements for Telstra. The company is now obligated to regularly compare customer data between the White Pages and its internal database every six months. Additionally, Telstra must implement a staff training program and undergo independent audits of its systems and compliance procedures. Failure to comply with these requirements could result in legal action and substantial financial penalties for Telstra.

This breach of customer privacy comes at a time when Telstra has announced price increases for most of its mobile phone plans. Some plans will see a rise of up to 4 percent, which is higher than the inflation rate. Despite this price increase, Telstra’s shares have performed well, gaining 1.8 percent to reach a three-month high of $3.80. This positive performance is notable considering the broader declines across every sector of the ASX.

Telstra executive Brad Whitcomb has defended the price increase, stating that telecommunications pricing, which encompasses all telecommunications equipment and services beyond just mobile prices, has not increased for consumers at the same rate as other consumer household goods and services over the past decade. In fact, according to data from the Australian Bureau of Statistics, telecommunications prices have actually deflated in eight out of the last ten years.

As Telstra works to address the breach and enhance its privacy protection measures, it must also navigate the impact of its price increase on customers. The company faces the challenge of balancing the need for fair pricing with the expectations of its customer base. Transparency and proactive communication will be crucial for Telstra to maintain trust and rebuild its reputation in the wake of this privacy breach.