ACA and ACCC to protect consumers with the start of MNP

The Australian Communications Authority (ACA) and the Australian Competition and Consumer Commission (ACCC) will jointly monitor carriers and carriage service providers in the lead-up to mobile number portability (MNP) and its implementation on 25 September 2001, to ensure MNP is marketed properly to consumers.

ACA Chairman, Mr Tony Shaw, said the ACA and the ACCC would closely review MNP marketing strategies and material put out by carriers and carriage service providers (CSPs) to check that they comply with relevant industry codes of practice and provisions of the Trade Practices Act.

"By working together we will ensure that carriers and CSPs are promoting MNP to customers in the right way", Mr Shaw said.

The ACA is responsible for monitoring and enforcing the Numbering Plan and provisions of the MNP Industry Code developed by Australian Communications Industry Forum (ACIF) and registered with the ACA.

"Important provisions of the code place the onus on CSPs to warn new customers transferring their numbers that they may have existing contractual obligations to their former CSP. Porting their number does not cancel these obligations", Mr Shaw said.

The ACCC is responsible for monitoring provisions of the Trade Practices Act 1974, which includes legislation relating to misleading and deceptive conduct, and anti-competitive behaviour. Both provisions apply to the marketing of telecommunications goods and services.

"The ACCC will be particularly vigilant in ensuring that consumers are not misled over the terms and conditions of changing mobile phone companies during the introduction of MNP", ACCC Chairman, Professor Allan Fels, said today.

"Small businesses especially will benefit from access to a choice of phone plans while retaining the same contact numbers. For many tradespeople, the mobile phone is the primary means of contact for obtaining new business and consistency of mobile number is critical to the ongoing success of their business. We see MNP as being a key driver for increased competition for mobile customers".

The ACCC has written to all mobile phone companies and requested copies of advertising and promotional material, as well as call centre scripts, to identify potentially misleading statements before consumers are affected. This pro-active approach to consumer protection has been well received by the phone companies. All but a few have now presented material to the ACCC and all have indicated a willingness to work cooperatively with the regulators.