The Australian Competition and Consumer Commission today issued a publication, fair.com, to help Internet Service Providers understand their rights and responsibilities under the consumer protection provisions of the Trade Practices Act 1974.
"Competition in Internet service provision is continuing to increase at a rapid pace", Acting ACCC Chairman, Mr Rod Shogren, said today. "With increased competition, there has been a rise in consumer complaints".
"Last year, two new types of product offerings by ISPs emerged: offers of free Internet connection and products limited by what are commonly termed 'acceptable user policies'. If offering free Internet connections, ISPs must ensure they comply with the consumer protection provisions of the Act – they are still bound even if the product is free. In the case of unlimited product offerings, ISPs should not advertise Internet services as unlimited unless the service is exactly that – unlimited".
The ACCC conducted several investigations last year into providers of 'free' Internet services. In one case an ISP calling for registrations from January 2000 for its free Internet service had over 300,000 consumers registered, but by May 2000 only five per cent had been offered connections. The ACCC's actions ensured that consumers who registered for the service would be advised of a likely connection date.
The ACCC also examined several products that were advertised as being 'unlimited' where the service was in fact limited by an acceptable user policy. The ACCC expects that, as more high bandwidth services become available, the use of such policies will increase, but warns ISPs that consumers need to have complete information about any limits that may apply to a service. Consumer must know exactly what they are contracting for before they sign up.
Mr Shogren said that publications such as fair.com are designed to provide industry with an insight into what the ACCC believes are the current issues in consumer protection.
"'Achieving compliance with the Act is the ACCC's aim and taking time to educate industry about their obligations under the Act forms a crucial part of its responsibility to both businesses and consumers".