ACCC ‘getting very cranky’ about premium mobile services

ACCC Enforcement Commissioner Sarah Court has identified premium mobile services as an ACCC hot spot for 2009.

Speaking to a packed audience at the Law Institute of Victoria, the former Australian Government lawyer indicated a personal view that the Commission is ‘getting very cranky’ about ringtone and wallpaper download services that ‘are costing consumers millions and millions of dollars.’

‘It’s a personal view’

Ms Court prefaced her presentation to Melbourne lawyers with a disclaimer that her views weren’t necessarily those of the Commission.  And the audience question only asked for her personal thoughts about areas of interest to the ACCC next year.

Instant answer

The Commissioner, appointed just six months ago after a decade working for the Commonwealth’s in-house legal team, certainly knew what her personal opinion was:  ‘mobile phones’.  She quickly went on to identify premium services, where often unwitting consumers subscribe to low value / high cost downloads and information, as the target.

Ms Court said her views were partly based on the TIO’s 2008 Annual Report which shows a massive number of complaints about premium services.  (It reports complaints in this area more than doubled over the previous year, reacging 22,391.)

Acknowledging that the content is often based offshore, Ms Court indicated that the Commission may look to local service providers and advertisers to help reform the area.

Footnote:  Draft Communications Alliance Code released

CSP Central also notes that Communications Alliance has a draft Mobile Premium Services Industry Code out for public comment until 12 December 2008.

‘The draft Code sets out obligations on suppliers to establish appropriate community safeguards in the provision of Mobile Premium Services. The Code specifies minimum requirements on advertising, provision of information, service delivery, complaint handling and opt-out mechanisms. Accompanying the Code is a Guideline designed to aid in interpreting the Code rules and provide examples of how a Supplier can comply with the rules.’

And consumer education materials

Communications Alliance has also unveiled a new consumer education website aimed at helping mobile users to avoid the pitfalls of premium services.