SMS spammers face Federal Court

By Stephen Withers
Wednesday, 14 January 2009 03:16

Government Tech Policy

Three companies and a number of individuals face legal action over SMS spamming and other breaches of federal legislation.

Mobilegate Limited (incorporated in Hong Kong), Winning Bid Pty Ltd, Jobspy Ltd and associated individuals have been targeted by the Australian Communications and Media Authority (ACMA).

Proceedings have begun in the Federal Court in Brisbane, alleging that the parties "sent or caused unsolicited SMS messages to be sent to Australian mobile telephone numbers via premium rate telephone shortcode 19773366, 19910006 and/or 19724253 for the purpose of offering to supply, advertise or promote a service known as 'Safe Divert', which was marketed as a text relay message service, or 'Maybemeet'; and/or by deception, through the use of fabricated dating website profiles, to dishonestly obtain a financial advantage or gain from Australian mobile telephone account holders."

These allegations are made under the Spam Act 2003 (unsolicited messages) and the Trade Practices Act 1974 (misleading or deceptive representations).

Further allegations have been made by ACMA concerning SMS spam in connection with a fantasy chat service known as Singles Club, AU Singles, or Australian Singles Online.

In each case, customers responding to the spam were charged up to $A5 per message.

This is the first time that ACMA has taken allegations of SMS spam to court.

The Spam Act prohibits the use of unsolicited SMS messages to advertise or promote goods or services. The maximum penalties are $A1.1 million per day for corporations and $A220,000 per day for individuals.

ACMA is seeking interim injunctions to halt the alleged activity while the case is being heard. If the court action is successful, it will also seek a permanent injunction.

The case will first go before the Brisbane Federal Court on February 6.