[ACMA] The Australian Communications and Media Authority today announced its strategy for protecting consumers of premium short message services (SMS).
‘ACMA is aware of consumer and community concerns about some industry practices concerning mobile premium services,’ said Chris Chapman, ACMA Chairman. ‘With the announcement of our strategy today, we are raising the bar very significantly.’
ACMA’s package contains a number of elements including:
an ACMA service provider determination that will legislatively mandate a number of specific protections;
a coherent and comprehensive monitoring framework; and
registration of a significantly improved industry-developed code that sets out detailed rules and procedures for a number of matters.
ACMA will make a service provider determination that will:
Require mobile carriers to provide the option of barring premium SMS services on all plans by 1 July 2010. As a way to help better manage their mobile expenditure, this will give consumers a choice to block such services if they wish to.
Require all content providers be registered. While the registry will be set up by industry, ACMA will be making a service provider determination that will allow for known rogue operators to be deregistered, thus preventing them from supplying services to the Australian market.
‘Premium SMS suppliers who fail to comply with the new rules will run the risk of penalties of up to $250, 000,’ said Mr Chapman.
As part of its package, ACMA has also registered the industry-developed Mobile Premium Services Code, which will give it legal force from 1 July 2009. The code sets out detailed rules covering a range of important matters including procedures to be followed for subscribing to premium SMS services; the banning of advertisements targeted at children under 15; strict rules about how advertisements (and charges) are displayed; and improved complaints handling obligations of companies supplying premium SMS services.
An important and welcome requirement of the revised code will be a ‘double opt-in’ requirement meaning that a prospective customer will need to give two independent confirmations of a request before they can subscribe to an ongoing premium SMS service.
While ACMA is confident that the package it is announcing today will have a significant and early impact on the market, it is also aware that the sector is fast moving. The package, including the code, will be reviewed in 12 months to address swiftly any shortcomings and emerging developments.
‘Compliance with the Mobile Premium Services Code is not optional. A key element of ACMA’s strategy will be a rigorous monitoring regime. ACMA will be taking compliance with the new code rules very seriously, as we have already been doing in relation to spam on mobile phones,’ said Mr Chapman.
Equally importantly, premium SMS suppliers will have to ensure their marketing and other practices comply with the Spam Act 2003, the Trade Practices Act 1974 and state and territory fair trading laws.
The regulatory package has been adopted by ACMA following extensive and helpful consultation with consumer representatives, the Australian Competition and Consumer Commission, and the Telecommunications Industry Ombudsman.
ACMA announces new approach to regulating mobile premium services
Mobile Premium Service Code
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