Australia: A warning to consumers about the problems of mobile premium rate services and how to manage them

[accc] 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."

Consumer information on mobile premium services