Using your mobile phone to buy products and services is becoming a part of everyday life. Examples of this kind of trade—sometimes called m-commerce—include voting for reality TV shows, downloading ring tones and paying for car parking, and airline and concert tickets.
While using your phone in this way can be fun and convenient, there can be risks. To avoid them, you need to understand the costs and conditions of any products or services you buy.
Adequate disclosure of terms, conditions and disclaimers
When you buy a service using your phone, such as a ring tone, you are entering a contract with the supplier.
Clicking 'yes' usually means you are agreeing to the terms and conditions of the contract, and any disclaimers the provider wants to make.
As with any contract, you are entitled to know what you are agreeing to. However, because of their smaller size, mobile devices may not be able to display long contracts, detailed terms and conditions or other important information before you enter the agreement. But this doesn’t mean there aren't any!
If you don't understand any part of the service you are buying, or what responsibilities it will put on you, ring the supplier of the service before you agree.
Companies using m-commerce to sell goods or services must follow the same laws that apply to other traders, such as the Trades Practices Act and state and territory fair trading laws. This means a business must not market its products in a way that is likely to mislead or deceive you.
For example, a business selling ring tones that are 'cover versions' of pop songs must not use the words 'real' or 'true' in their marketing, as this could mislead you into thinking you were downloading music by the original performer.
Mobile devices are not immune from scams and unwanted content, and m-commerce can provide a new platform for these problems.
Text 'STOP' to unwanted text messages or to end unwanted subscriptions.
Never reply to text messages offering you free ring tones or missed calls from numbers that you do not recognise.
Don't ring phone numbers beginning with 19 unless you are aware of the cost involved. These numbers are charged at a premium rate.
Read all the terms and conditions of an offer very carefully. Services offering free or very cheap products often have hidden costs.
Be careful giving out your number to people you don't know
For more information on mobile phone scams, as well as other scams that may target consumers using m-commerce, visit our SCAMwatch website.
Privacy issues
The wireless technologies that make m-commerce possible may create risks to your privacy. For example, they can allow other people to collect your personal information and track your visits to websites. Take extra precautions to protect yourself.
M-commerce and the future
M-commerce can be an efficient and convenient way to trade, but for many of us, keeping up with the latest developments in technology can be a challenge. If you don’t have a lot of experience with online purchasing or are not comfortable with new technology, don't rush ahead. Just because it is a novel option does not always mean it is the best option for you.
We receive many complaints from young consumers who have not understood what they have actually paid for until the mobile phone bill arrives or their phone credit disappears at a very fast rate.
M-commerce is still evolving so it is difficult to predict how much it will change the way we shop. The Trade Practices Act offers you the same protections whether you visit a shop in person or make your purchase online.
