Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
The ACCC has told the providers of downloadable ring tones both in Australia and overseas to cease misrepresenting 'cover' versions of songs by popular artists as being by the artists themselves.
"The ACCC has become aware that a large number of traders are marketing what they call 'real' or 'true' tones in a way that may mislead consumers into believing they are buying a ring tone of their favourite artists singing", ACCC chairman, Graeme Samuel, said. "In most cases, the conduct of concern involved the use of well-known artists' names and/or images next to the song titles.
"Without an effective disclaimer, the ACCC believes such conduct is likely to lead consumers to conclude that the named/pictured artist performed the ring tone song."
The ACCC says it has found evidence of this misleading conduct on websites from which the ring tones are downloaded and in TV and magazine advertisements. It says it has written to the operators of more than 20 sites, "both locally and internationally, including Europe and the United Kingdom," to put them on notice.
"Ring tone promoters have been asked to replace the words 'real' or 'true' tones with the term 'cover tones' to better reflect the ring tones being sold." Samuel said. "Additionally, the ACCC has asked that disclaimers be provided in a prominent, meaningful and contemporaneous manner so as to adequately dispel any misimpressions that are likely to arise."
He said that tone traders had been given a two-week deadline to address its concern. However it is hard to see how the ACCC could take any enforcement action against content on overseas web sites.
Samuel said that "So far, the results have been very positive with most traders willing to comply with the ACCC's requests." But he warned that the 20 sites were "only the tip of the iceberg in what appears to be an industry wide practice."
David Bass
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