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Compensation for Business Loss
Q: Who can claim compensation for business loss from their phone company?
A: Small Businesses (not individuals) who can demonstrate that the action or inaction of a telephone carrier or service provider has caused financial loss to their business can lodge a claim for compensation.
Q: What types of compensation claims can the TIO handle?
A: The TIO can investigate cases where complainants are seeking compensation for the following problems:
faults on customers¡¯ lines that were not attended to in a timely fashion;
delays in the provisioning of services for a small business;
telephone services not provided in accordance with a customer¡¯s requirements e.g.call diversion;
errors or omissions in a business listing in the White Pages directory.
Q: Are there any types of compensation claims the TIO can¡¯t assist with?
A: The TIO will only consider claims based on actual monetary losses suffered that are a direct result of the actions or inaction of your Telephone Company or ISP. Claims for pain and suffering, loss of business reputation, inconvenience and mental distress will not be considered. Moreover, the TIO will only consider claims for losses that a reasonable person would anticipate in all the circumstances.
Q: Can I get compensation for the costs involved in pursuing my complaint?
A: As general rule, the TIO does not make any awards for the costs involved in compiling or pursuing a compensation claim. For example, the TIO will not make an award for the cost of your working time on the basis that you spent x hours compiling your claim and you usually charge $XX/hour on a time basis for your services. Nor will the TIO usually consider claims for reimbursement of expenses incurred in pursuing a claim such as telephone calls, writing paper and postage.
Q: The lack of service by my provider resulted in me spending many frustrating hours attempting to resolve my problem and I would like to be compensated for my efforts. Is this possible?
A: In general, service providers will not compensate customers for time and effort spent in attempting to resolve a complaint. Your provider may consider applying a goodwill credit to your account in the interests of good customer service. This would be at the discretion of the provider - the TIO is not able to direct the application of such a credit.
Q: Will the TIO consider claims for punitive damages or interest?
A: The TIO does not consider claims for punitive damages and interest. This is because punitive damages and interest are, in essence, a 'penalty' against a company, and go against the principles of alternative dispute resolution that the TIO adheres to.
Q: What steps do I need to take before approaching the TIO for assistance with a compensation claim? A: The TIO cannot investigate a compensation claim unless you have first made your claim directly to your service provider. If your claim is rejected by the provider, the TIO is then able to consider your complaint.
In order for the TIO to take up a case regarding a compensation claim, substantiation of the claim must be provided. The claim must be based on the loss of actual earnings rather than potential earnings, and should clearly demonstrate that there was a loss of profit during the period that is in dispute. It should also be established to what degree the loss in profit could be directly attributed to the actions of your service provider, as other factors may also have contributed to the financial loss. You should also take reasonable steps to mitigate your potential losses. You must make sure that you are able to provide evidence to substantiate your claim before the TIO will consider raising a formal investigation with your provider.
The TIO's compensation claim fact sheet outlines the evidence and information that complainants should, where possible and appropriate, provide to the TIO.
In the absence of documentary evidence to support your claim, the TIO may exercise its discretion not to investigate your claim further.
Q: I had to seek legal advice and spend many valuable hours working on my compensation claim which cost me a substantial amount of money. Can I add these costs to my claim?
A: The costs involved in compiling or pursuing the claim itself are not to be included in the compensation claim amount. These costs will not be reimbursed even if your provider admits liability for your loss of business and your claim proves to be successful.
Q: Should I get professional help to prepare my claim?
A: You may wish to seek professional advice in order to prepare a thorough and substantiated claim. Be aware, however, that the TIO does not as a general rule make any awards for the costs involved in compiling or pursuing a compensation claim.
Q: Can the TIO order my phone company to pay me compensation?
A: Yes; if the TIO is satisfied that compensation should be paid, it can make a binding decision against a member of the TIO scheme up to the value of $10,000. The TIO can also make recommendations up to the value of $50,000. However, a recommendation is not binding on the consumer, who may choose whether to accept or reject the TIO's recommendations. If the total amount involved is more than $50,000, the TIO may make a 'finding of fact', but cannot make directions or recommendations about compensation or other remedial action. If your claim is above $50,000, and you believe it is well substantiated, you may wish to consider other avenues of dispute resolution, such as the courts, given the dollar limitations on how much the TIO could award as compensation.
Q: What happens if my provider makes an offer of compensation that I find reasonable and I want to accept it?
A: If you wish to accept an offer that is made by your provider, you will be required to sign a ¡®Release and Indemnity Form¡¯ before the matter can be finalised. On signing this form you agree not to pursue the matter further. If you later change your mind and decide that the offer is unfair, the TIO is unable to become involved.
Ask and answer these questions about compensation for business loss.
Keywords
Compensation business loss
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