The Competition Policy & Consumer Affairs Minister, Chris Bowen MP today welcomed the consumer advice - Your Consumer Rights: Mobile phone premium services - put together by the Australian Competition and Consumer Commission (ACCC) and the Australian Communications and Media Authority (ACMA).
Mobile premium SMS services offer entertainment, news, games, competitions and other content, and often cost more than standard SMS messages.
"There is quite some concern in the community, particularly among young people, about mobile premium services," Mr Bowen said.
"The ACCC fields quite a lot of complaints from consumers who have been confused or misled by certain marketing techniques surrounding mobile premium services.
"At times, the lack of proper disclosure of terms and conditions may mislead consumers in breach of the Trade Practices Act."
The consumer watchdog, the ACCC receives a consistently high number of complaints about mobile premium services. These include:
- Complaints from consumers who have unwittingly subscribed to an ongoing subscription, believing it to be a 'one off', and have received an unexpectedly high bill as a result. These consumers may not have had important terms and conditions properly disclosed to them.
- Consumers who have experienced difficulty unsubscribing from premium services, or who have received unsolicited messages.
"The new factsheet is a timely reminder of what to look out for before a consumer requests these types of services," Mr Bowen said.
The factsheet Your Consumer Rights: Mobile phone premium services includes important consumer information on:
- whether the service is a one-off download or an ongoing subscription;
- its total cost;
- what to do if you receive an unsolicited service;
- how to cancel the service; and
- how to resolve disputes about premium services.
"There is an industry scheme in place regulating the provision of mobile premium services. Active steps are being taken to review this and the Government encourages industry to continue this work," Mr Bowen said.
"The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, has already publicly warned that industry needs to address these issues quickly and effectively or the Government will have little choice but to explore alternative regulatory options.
Interested consumers should go to www.accc.gov.au or contact the ACCC Info Centre on 1300 302 502.
20 August 2008