Being able to download ring tones, games and music, enter competitions, check the latest sports scores and check your horoscope can be a fun part of owning a mobile phone.
These mobile extras, offered from numbers starting with ‘19’, are often called ‘premium services’.
Ways that you agree to receive a mobile premium service include:
sending an SMS (such as a 'code word') to a '19' number
entering your mobile number into a website
ringing a recorded voice service where you enter your mobile number.
Complaints to the ACCC about premium services
The ACCC receives many complaints from consumers about premium services. Problems we hear about include:
'free' ring tones not being free
phone users finding out that by accepting a ring tone offer, they have committed to a costly subscription service (which, for example, requires them to pay for a new tone each week)
people not being made aware of a service's terms and conditions
phone users experiencing problems unsubscribing from a service
ring tones advertised as being ‘real’ or ‘true’ that are not recorded by the genuine artist
children accessing these services
consumers being charged for services not received or that do not seem to work.
Often, consumers do not realise there is a problem until their phone bill arrives with some unexpectedly high charges attached, or their pre-paid credit disappears at a very fast rate.
Ways to avoid problems with premium services
Checking out some simple details before you send an SMS to download a ring tone could help you avoid the sting of an unexpectedly high phone bill.
1. Is it a one-off download or a subscription?
Some premium services are subscriptions, where you receive regular ongoing messages, each with its own cost.
Some subscriptions are disguised as competitions, 'scratchy' cards and quizzes, where you 'enter' by sending an SMS or typing your mobile number into a website.
So if you see the word 'subscription' somewhere in an advertisement, check out the details—you may find that the service is not what you think it is, or what you want.
If it is a subscription, the most important things you need to know are:
how many SMS or downloads you have to pay for—what's the total cost?
whether there is a joining fee
how long does the subscription last—is it one day, one week, one month or until you stop the service?
if there is a 'free' offer, is there a catch? An advertisement for a 'free' ring tone might mean the first or second one is free, but once you sign up you're charged for a new ring tone every week.
MPS businesses are required to make this information easy clear and easy to understand in advertising and in any messages they send to you. If it is not, don't sign up for the service.
2. Can I contact the provider?
If you have a problem, this information will be very important. MPS businesses are required to provide you with a customer service number in information you receive. You can also find out contact details from your mobile phone company or check out the Communications Alliance MPS website, www.19sms.com.au.
Be aware if they are not based in Australia they may be harder (and more expensive) to contact.
3. Does this service work on my phone?
Premium services may use different mobile internet technology, which means not all content is compatible with all handsets. If you download a service that is not compatible, you will probably still be charged for it.
Downloading premium content also counts as a data download. So depending on the kind of phone agreement you have you may be charged for the data (in addition to the premium service cost), or it may count towards you monthly allowance.
Also, depending on how your phone is set up, messages about premium services that download from the internet might go straight to a special inbox (and so not show up in your regular SMS inbox).
4. What if I am using a prepaid phone?
With some prepaid phones you can continue to be charged for ongoing premium services even after your credit runs out. Without a bill, you might only find out when your recharged credit disappears quickly. Check with your mobile provider about whether this affects you.
5. Can I stop premium services being sent to my phone?
If you don't want to receive any premium services, ask your mobile phone company about call-barring options. Some companies can arrange for certain numbers, such as premium 19 numbers, to be blocked from your phone.
Cancelling a service
You can cancel any service you have subscribed to by replying ‘STOP’ to the number that sends you the premium service or to the number in the introductory message.
You can’t be charged for any messages sent after you SMS ‘STOP’.
The STOP message should cost no more than an ordinary text message.
Problems and complaints
If you have a problem with a premium service, such as getting charged for a service you didn't ask for, don't ignore it. Try and sort out the problem with the MPS business—they are required to deal with the issue within two business days.
Their customer service number will be included in the introductory message they sent you. If you can't find the number, ask your mobile phone company or check out the Communications Alliance MPS website, www.19sms.com.au
If you're not happy with resolution offered, you can contact the Telecommunications Industry Ombudsman. The TIO is a free and independent service for residential customers and small business in Australia that can help you resolve MPS complaints.
Complaints to the TIO can be made by the person with the problem or a parent or guardian (for persons under 18 years of age).
If you think you've been misled about a mobile premium service
The ACCC administers the Trade Practices Act 1974, which prohibits misleading or deceptive conduct. If you think you've been misled about a premium service, in advertising or elsewhere, contact the ACCC Infocentre on 1300 302 502.
Spam and scams
If you receive an SMS you did not ask for that advertises a business or service or invites you to subscribe to a service, it may be spam. It is against the law to send spam, so if you think you've received mobile spam, don't delete it—report it the Australian Communications Media Authority.
If the message claims you have won money or contains some other offer that sounds suspicious or too good to be true, it may be a scam. You should delete these kinds of messages. The ACCC's SCAMwatch website has up-to-date information on how to protect yourself from mobile phone scams and how to report them to the appropriate authority.
Information you will need when making a complaint about a premium service
The name of the trader, the phone number and any website associated with the service.
Copies of phone bills showing the charges.
If you have a pre-paid account, check with your phone carrier as they may still be able to provide you with a list of calls.
Copies of the offending message or messages.
Do not delete them until you have reported the problem to your phone carrier or complaint handling body. They may need it to investigate your complaint
Details of how and where the service was advertised, if known.
Mobile premium services rules
New MPS rules came into effect with the introduction of the Mobile Premium Services Code on 1 July 2009. The code requires businesses to provide consumers with clear and accurate information about their services, including in their advertising. It also sets out how MPS businesses must handle complaints.
The Australian Communications and Media Authority is the Australian government agency responsible for the regulation of broadcasting, the internet, radiocommunications and telecommunications. ACMA has fact sheets on a range of consumer topics on telecommunications services on its website.
The ACCC’s SCAMwatch website provides information on common scams. The website has tips on how to protect yourself from scams and report them to the relevant agencies.
