ACMA Media
Release
142 /2010
Page 1 of 2
29 October 2010
ACMA acts on premium SMS ads
The Australian Communications and Media Authority has directed mobile premium
service providers Storacall Technology Pty Ltd and Singtel Optus Pty Ltd to comply
with industry rules after the ACMA found that both companies breached the Mobile
Premium Services Code (the code)
A
direction to comply is the ACMA’s strongest available action in response to a
breach of an obligation under the industry code. The ACMA may request penalties
of up to $250,000 in the Federal Court if a further breach occurs.
The ACMA found an advertisement for the Storacall TexTalk subscription service
breached the code rules by not clearly stating that it was a subscription service, or
including a helpline number.
An advertisement for the SMS Cosmo Optus Store Locator service was found in
breach for not containing prominent and highly visible pricing information, or
including a helpline number.
‘Providers of mobile premium services have a mandatory responsibility to give
potential customers all relevant details of the services they are offering,’ said ACMA
Chairman, Chris Chapman.
Under the code, advertising must include the cost of a service in a font size
comparable to the size of the short code; the word ‘subscription’ or ‘subscribe’ must
be clearly stated for ongoing services; and a helpline number must be clearly
displayed so that customers who do experience problems can resolve them quickly
and easily.
‘Industry is very aware that the ACMA is actively monitoring compliance with the
Mobile Premium Services Code and will protect mobile customers’ rights to receive
accurate information about the prices, terms and conditions of these services, and
I’m delighted that the combination of the revised industry code and the ACMA’s
buttressing regulatory determinations have already seen a dramatic 90 per cent
decrease in complaints over the last two years,’ said Mr Chapman.
The ACMA is currently focusing on complaint handling in the telecommunications
sector generally, through its Reconnecting the Customer inquiry.
‘Establishment and effective operation of measures such as customer help lines is a
core obligation for service providers in this industry,’ said Mr Chapman.
The report of the ACMA’s investigations and the formal directions to comply are
available from the ACMA website.
Information for consumers about mobile premium services is also available from the
ACMA website.
ACMA Media Release
142 /2010
Page 2 of 2
For more information or to arrange an interview please contact: Donald
Robertson, Media Manager, on (02) 9334 7980, 0418 86 1766 or
media@acma.gov.au.
The ACMA is Australia’s regulator for broadcasting, the internet, radiocommunications and
telecommunications. The ACMA’s strategic intent is to make communications and media work in
Australia’s public interest. For more information: www.acma.gov.au.
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