ACMA clamps down on premium mobile services

Stuart Corner
Monday, 18 May 2009 13:14

IT Industry - Strategy

The ACMA has registered Comms Alliance's new industry code covering the provision of premium mobile services, and announced a number of additional initiatives to curb abuses of the system by shonky service and content providers.

These include an ACMA service provider determination that will legislatively mandate a number of specific protections and what the ACMA promises will be "a coherent and comprehensive monitoring framework."

The service provider determination will require mobile carriers to provide the option of barring premium SMS services on all plans by 1 July 2010 and require all content providers to be registered. The registry will be set up by industry but th ACMA will make 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.

The new industry code will come into effect on 1 July 2009. It sets out the procedures that must me followed for subscribing to premium SMS services; bans advertisements targeted at children under 15; set out rules about how advertisements (and charges) are displayed; and imposes improved complaints handling obligations of companies supplying premium SMS services.

 A key requirement of the revised code will be 'double opt-in', a requirement that a prospective customer must give two independent confirmations of a request before they can subscribe to an ongoing premium SMS service.

The ACMA says it is "confident that the package [we are] announcing today...will have a significant and early impact on the market," but is also aware that the sector is fast moving and says the package, including the code, will be reviewed in 12 months "to address swiftly any shortcomings and emerging developments."

Review of the code is the responsibility of, and a decision for Comms Alliance and when it released the code, and submitted it for registration to the ACMA it indicated that it would be reviewed in 12 months.

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