Premium SMS service provider B33hive Pty Ltd has changed its radio advertising after the Australian Competition and Consumer Commission raised concerns.
B33hive runs Lowball which is a reverse auction SMS competition advertised across regional Queensland and New South Wales.
The ACCC was concerned that the radio advertisements failed to adequately refer the consumer to the terms and conditions of the competition, available on the internet. Further it was not made clear that by entering the competition the consumer was accepting an ongoing SMS subscription for which they would be charged.
Once contacted, B33hive actively worked towards addressing the ACCC's concerns. Specifically, B33hive have amended its radio advertising and internet pages so that the conditions of entering the reverse auction are clear to consumers from the outset.
The ACCC has observed an increasing number of complaints regarding similar conduct in the premium SMS industry.
"The premium SMS industry is largely regulated by ACMA under the Telecommunications Service Provider (Mobile Premium Services) Determination 2005 (No.1)," ACCC Chairman, Mr Graeme Samuel, said today. "However, providers need to recognise that they still have obligations under the Trade Practices Act.
"Traders in the premium SMS industry, as in every industry, need to be aware of their obligations under the Act and risk ACCC action if they breach its provisions. They must fully inform consumers of any conditions or additional charges for unsolicited goods or services which are part of a promotion.
"If consumers have been caught out by similar conduct, they should contact their mobile telephone service provider in the first instance."
