Ombudsmen in Australia - Industry and Organisational Ombudsmen

Industry and Organisational Ombudsmen

Unlike the government run ombudsman services, industry-based ombudsman resolve complaints made against their members, who are required to pay a yearly membership fee. Industry-based ombudsmen generally operate according to a constitution and are impartial in their decision-making. That is, they don't take sides—they are neither an industry nor a consumer advocate.

Like government run ombudsman services, the services of external/alternative dispute resolution (ADR) are free for consumers. The costs of the ombudsman services are usually charged to its members on a case by case basis, or can be determined on the amount of complaints that the company has received for that financial year. Generally the providers in a particular industry (for example telecommunications, energy and water, credit, insurance, public transport) are required to be members of an independent External Dispute Resolution scheme (EDR). A Board or Council with representatives of both industry and consumers as well as an independent Chair, is responsible for the operation of an industry-based Ombudsman. The Board or Council appoints the Ombudsman. Government or an independent regulator, such as the Australian Securities and Investments Commission (ASIC) may be involved by approving the scheme and ensuring that it complies with certain standards. Sometimes a Government Ombudsman is also an industry Ombudsman. An industry-based Ombudsman typically charges each member according to the number and/or the complexity of complaints it receives about the company. While the development of these facilities over the last 20 years has "lifted industry dispute resolution standards", the industry schemes have "stalled and cannot be described as world best practice".