Why it pays to listen to ACCC warnings

You can’t say the ACCC doesn’t give fair warning.

Back in November 2008 we reported that the ACCC were getting ‘very cranky’ about premium SMS. And in March this year, ACCC supremo, Graeme Samuel, gave a direct warning to the industry about premium SMS.

Well, the ACCC has stuck to its word and launched two separate actions in the Federal Court against AMV Holdings and Clarion Marketing Australia.

The ACCC alleges that AMV ran misleading ads that hid the true cost of premium services being offered and that Clarion signed customers up to a paid subscription service without their knowledge.

The ACCC is usually a very predictable regulator. They normally advertise which industries or which industry practice they will be targeting. Quite often, they make known what they consider acceptable and unacceptable practice. It’s part of their approach to enforcement.

And it pays to listen.

Compliance can be balancing act, especially for the small to medium-sized telco. But the cost of non-compliance can be significant – even terminal. It’s a no-brainer then to focus compliance efforts on areas that the chief regulator has said it’s focusing on.

So, what else is on the ACCC’s agenda at present?

Here’s a clue -

this is what the ACCC has said about the new component pricing law:

… the new component pricing provisions apply to all price representations made to consumers

… you should review your marketing across all media including television, radio, print, billboards, posters, websites et cetera

… there is no ‘grace period’ for compliance with the new provisions – they have been in effect since 25 May 2009.

Fair warning.