A new fact sheet Mobile premium services—Information for consumers has been released following a new industry-developed code taking effect on 1 July.
The Australian Communications and Media Authority and the Australian Competition and Consumer Commission have jointly produced the Mobile premium services—Information for consumers fact sheet to help users of mobile premium SMS to:
only sign up to an ongoing service if they want to
cancel services they no longer want, and
know where to get help or get a complaint resolved.
"While mobile premium services can be entertaining, informative and convenient, it’s important that consumers are confident they know what they are signing up for," said Chris Chapman, Chairman of the ACMA.
Stringent rules in the code mean that mobile phone users will first notice the change in print, television and internet advertising about subscriptions to premium SMS. Ads for ongoing mobile premium SMS services must contain the word "subscription" and clearer information about the cost of the service.
"The ACMA will be closely monitoring compliance with the code, and consumers can be confident we will take serious action against rogue suppliers," said Mr Chapman.
"The ACMA will be particularly rigorous around critical consumer protections such as making sure premium content suppliers respond promptly to any reply SMS containing the word "STOP". Suppliers cannot charge mobile phone users for any messages received after a "STOP" command has been sent, and must cancel the service entirely within one business day," Mr Chapman said.
"Earlier this year the ACCC flagged concerns about mobile premium services and warned the industry to clean up its act," ACCC Chairman, Mr Graeme Samuel, said.
"Consumers were complaining about unsolicited services and misleading advertising.
"The code's new advertising requirements, and the fact that consumers will have to re-confirm they want to receive all mobile premium services, will go a long way to protect consumers from these problems.’
"The code is also an opportunity for the industry to prove that it does want to protect consumers."
"The ACCC will be keenly watching to see whether the industry lifts its game, and will also take firm action under the Trade Practices Act 1974 when the need arises."
"In the meantime, this fact sheet will be required reading for consumers—particularly younger consumers and their parents—to learn how to better protect themselves, and how to deal with any problems."
The ACMA will also introduce measures to make sure all phone companies offer the option to block access to mobile premium SMS by July 2010.
Registration of the Mobile Premium Services Code, which was submitted by Communications Alliance, gives the code legal force, meaning the ACMA can direct service providers to comply with code obligations.
Failure to comply with ACMA directions under section 121 of the Telecommunications Act 1997 regarding an industry code may lead to proceedings in the Federal Court for the recovery of a pecuniary penalty of up to $250,000.
More information for consumers, including a look-up facility to find the helpline number for a particular premium SMS service, is available at http://www.19sms.com.au/.
The Mobile Premium Services Code includes improved safeguards and protections for consumers at all stages of a service. These include:
Clearer advertising
Advertising to include clear, prominent and legible information in plain language on price (including sign-up costs and the basis for calculating charges) and whether the service is a subscription service.
Additional protections for minors
A ban on advertisements for premium SMS services targeted at children under 15.
Advertising which may encourage minors to use the service to carry a warning for people under 18 years to ask the account holder before using the service.
Content suppliers to consider the account-holder consented to purchase of a mobile premium service when investigating complaints involving minors’ use of mobile premium services.
Preventing unauthorised or inadvertent purchases
Application of an enhanced ‘double opt-in’ procedure for requests for ongoing premium SMS services, involving mobile phone users providing two independent confirmations of their request.
Identifying service providers & services
Establishment of a service enabling customers to obtain the contact details for suppliers of premium SMS services, at www.19sms.com.au.
Limiting ongoing loss of prepaid credits
Measures to prevent charges for ongoing services continuing to accrue after the credit on a prepaid account has been used up.
Customer notifications
Customers to receive a monthly SMS alert about services they are currently subscribed to or whenever they spend a multiple of $30 on a service.
A "$MSG" flag to precede any content message charged at a rate higher than a standard SMS.
Cancellation of services
Customer requests to unsubscribe to be actioned as quickly as possible and no later than within one business day.
Customers not to be charged for messages received after an unsubscribe request.
Customers unsubscribing from a mobile premium service to be also unsubscribed from any associated marketing messages and removed from associated marketing databases.
Complaints handling
Content suppliers—as the organisations directly responsible for premium SMS services—to be the first point of contact for complaints.
Content suppliers to offer a free-call or local call helpline staffed between 9am and 5pm on business days.
Content suppliers to identify and fix systemic and recurring problems to eliminate the underlying causes of complaints.
Other ACMA measures
Problems with mobile premium services are also being addressed by a package of measures in addition to the code, consisting of the following.
Do not contract rule
The ACMA will make a service provider determination under section 99 of the Telecommunications Act 1997 that will prohibit mobile carriage service providers and aggregators from contracting with content providers and aggregators not registered on an industry-developed registry.
Do not bill rule
The ACMA will make a service provider determination under s.99 of the Telecommunications Act 1997 to prevent content providers and aggregators responsible for serious breaches of the Mobile Premium Services Code from operating in the market for a specified period.
SMS barring rule
The ACMA will make a service provider determination under s.99 of the Telecommunications Act 1997 to achieve universal availability of the option for customers to bar premium SMS messages by July 2010.
Spam Act and Trade Practices Act
The ACMA will continue to take enforcement action against premium SMS suppliers who contravene the Spam Act 2003 by sending unsolicited SMS messages. The ACCC and state and territory offices of fair trading will also continue to enforce provisions of the Trade Practices Act 1974 and state and territory fair trading laws respectively in respect of misleading and deceptive conduct by premium SMS suppliers.
