Governments and corporations are profiteering by overcharging customers who choose to receive their bills and statements in the mail, according to a new study.
State and federal government departments and major companies including banks, utilities and telcos are charging customers anywhere from $1.69 to $3.20 to receive paper statements, claiming the fee is reflective of actual transaction costs. Just last week, NSW Roads & Maritime added a new $2.20 charge for E-Toll postal statements.
However, a study of the major mail users market by industry initiative Two Sides Australia (TSA) found that the actual cost per unit equates to 88 cents for a standard bill or $1.02 for a personalised marketing-style invoice - far below the charges currently being demanded.
“These findings suggest that businesses are profiteering from customers who wish to receive their statements on paper and further demonstrates the irresponsibility of these companies,” says Kellie Northwood, executive director of TSA and consumer lobby group Keep Me Posted Australia. “The claim that print and postage costs have dramatically increased is fallacious. Print costs have declined year on year since 2009 and postage cost increases are not in line with consumer stamp prices. Simply put, big businesses have access to discounted postage rates and are not paying $1.00 a stamp."
A recent global survey by TSA and researcher Toluna found that 76% of Australian consumers are unhappy if asked to pay for paper communications and 69% want the option to continue receiving printed information because it provides a permanent record of important documents. About 43% said they don’t have a reliable internet connection and require paper records to stay informed, and 44% said they'd consider changing service providers if asked or forced to move to paperless communication.
The Keep Me Posted campaign was launched in April at Parliament House in Canberra with the support of many MPs including Independent Senator, Nick Xenophon. “The fact that there are millions of Australians who live in households without internet access is a big issue," said Xenophon. "Why should these people, particularly senior citizens, be impacted in this way? It really does seem to be quite discriminatory and counterproductive."
Northwood says research has found that the move to online statements may actually be costing companies more than they realise because many are neglecting end-to-end costs associated with digital communications. A recent study by the Danish company Natur-Energi estimated that it costs on average $3.51 per customer to get paid by paper invoice compared to $6.21 per customer billed by e-mail.
Keep Me Posted cautioned consumers against accepting the ‘pay-to-pay’ practice for paper statements.
"Businesses restricting access to paper bills and statements, imposing unjustified fees and denying customers an informed choice could only be the beginning," Northwood says. "Failing to challenge these actions risks setting a precedent for additional charges to all statements in the future, taking even more money away from vulnerable Australians and putting it right into the pockets of big business. If we accept the precedent of customers paying for invoices and statements, there is nothing to stop companies charging us for digital statements in the future."
Northwood adds that e-Communications have exposed customers to online fraud.
"Over the last two months in Australia, phishing scams have targeted Telstra, AGL and NAB customers, among others, with fake emails related to bills or statements. The ‘perceived legitimacy’ of these emails saw many customers fooled and they provided personal information exposing themselves to future fraud.
"Keep Me Posted is calling on politicians to be the voice for Australians, particularly the most vulnerable, who cannot access or use the internet and are not given a penalty-free choice. We have tried to work with companies directly and have been largely ignored. We now call on politicians to listen to Australian’s concerns and be the voice for Australia’s most vulnerable."
The Keep Me Posted (KMP) campaign represents advocate groups, charities, consumer groups, employer and employee representatives, industry and political representatives who believe in the customer's right to choose, without penalty, the way that companies communicate with them.