Communications watchdog slams ISP for unauthorised credit card deductions

The Australian Communications and Media Authority has taken action against Perth-based internet service provider Web Ace and says the company deducted money from customers’ credit cards without their permission.

The communications watchdog has ordered Web Ace, which is owned by Jason Kenneth McKay, to stop its “fraudulent billing practices” and comply with the Telecommunications Consumer Protections Code.

Failure to do so can incur civil penalties of up to $1 billion.

ACMA says Jason Kenneth McKay (trading as Web Ace) has been “deducting money from customers’ credit card accounts without their authority. The monies deducted have proved difficult, if not impossible, for customers to recover”.

The watchdog says many Web Ace customers authorise bill payments through automotive debits from credit card accounts for agreed-upon services.

“What customers did not expect was that Web Ace would take money from their accounts at other times and for different amounts, without their prior knowledge or consent,” ACMA said in a statement.

Under the Telecommunications Code, ISPs must provide a bill for any amount that has not been previously agreed upon. An automatic direct debit can only be made before the customer has a chance to view query or dispute the bill.

“In issuing this direction, the ACMA has taken enforcement action to ensure that Web Ace’s customers will enjoy the same consumer protections afforded by the code as are available to customers of other telecommunications providers,” said Chris Chapman, Chairman of the ACMA.

Web Ace did not comment prior to publication.