Mr142-10: Acma Acts On Premium Sms Ads

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29th October 2010, 02:39pm - Views: 1537

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ACMA Media


142 /2010

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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)


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.

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ACMA Media Release

142 /2010

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For more information or to arrange an interview please contact: Donald

Robertson, Media Manager, on (02) 9334 7980, 0418 86 1766 or

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

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