Australian Regulator Clamps Down on Premium SMS Abuse

Australia's Communications and Media Authority has announced plans to increase consumer protection when dealing with premium short message services (SMS). The ACMA plans to mandate a minimum set of standards and a "significantly improved" industry-developed code that sets out detailed rules and procedures for a number of matters.

"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."

The new rules will also require mobile carriers to provide the option of barring premium SMS services on all plans by 1 July 2010.

Also, it will require all content providers to be registered with a central organisation. 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 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.

The package, including the code, will be reviewed in 12 months to address any shortcomings and emerging developments.

The new Mobile Premium Service Code is available at the Communications Alliance website, www.commsalliance.com.au.

Posted to the site on 18th May 2009