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Optus monsters component pricing law

Just days after ACCC wrote to the industry demanding immediate compliance with its new component pricing law, mega-telco Optus has ignored it.

Today’s web carries a flash ad spruiking a ‘new monster value ‘yes’ $59 cap, ‘so good, it’s scary’.  So is the fact that it’s an illegal advertisement.

Well, $59 is the monthly base price for the plan, so unless it’s a month-to-month plan (so that $59 would be the total cost as well as the monthly cost), the advert needs to state prominently the total contract cost.

Well, the flash banner doesn’t, and neither does the web page it links to.  The web page includes total cost down the bottom and in small print.  But ‘prominent’ ?  No way.  Optus is plainly in breach of section 53C of the Trade Practices Act.

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ACCC advice doesn’t add up

accc-goofJust to show that CSPs aren’t the only ones we are watching …

ACCC’s new guide to the component pricing law shows how easy it is to slip up in advertising. 

Click on the sample advert to enlarge it, and you’ll find that – despite ACCC encouragement – the advertiser shouldn’t advertise a total price of $2,240.  We’re all human, even the regulator.

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Advertising prices: ACCC prepares to kick butt

accc-kickIn the next step in its war on ISP / telco advertising, ACCC has now written to individual providers warning them that there’s no grace period for compliance with the new component pricing law.

‘You should review your marketing across all media including television, radio, print, billboards, posters, websites et cetera,’ says the regulator. ‘The ACCC is concerned that some telecommunications service providers are making component price representations in ways which may not comply with the recent amendments to the TPA.’

Any ISP or telco that isn’t up to speed on the new Trade Practices Act component pricing law needs to act immediately. 

We can’t say we weren’t warned.

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TPG breaches new price advertising law

goof25 May 2009 and a new price advertising law takes effect.  29 May 2009 and TPG’s web site is in breach.

When will they ever learn ?

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ACMA launches premium SMS offensive

smsThe Australian Communications and Media Authority has announced a package of measures designed to smash rogue premium SMS operators.

The industry was already expecting the Mobile Premium Services Code, which was finalised a few months ago and will take effect on 1 July 2009.

But in a move ACMA hopes will be decisive, it has revealed three other weapons in the battle against shonky premium SMS outfits.
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Bushfires prompt changes to Use and Disclosure restrictions

fireIn the wake of the terrible bush fires that hit Victoria, new regulations create an exception to the use and disclosure offences under Part 13 of the Telecommunications Act 1997.

Part 13 of the Act requires that Carriers, CSPs, their employees and contractors protect the confidentiality of protected information such as the content of communications, the affairs and personal particulars of people and namely the integrated public number database. The offences under this part are contained in sections 276 to 278, and can include a penalty of imprisonment against offenders.

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New consumer law will punch holes in ISP / telco contracts

scales-unbalancedLast August, we explained that the Ministerial Council on Consumer Affairs had generally accepted a Federal Productivity Commission recommendation for a national ‘unfair contracts’ law.

Canberra now says it will fast track the new law.  Expect a bill in Parliament by June 2009, and a new law in force from 1 January 2010.  As part of the process, an important discussion paper is now available.

Make no mistake.  The new law will force a re-think of most ISP and telco standard contracts in Australia.  Many everyday, standard terms will be at risk, or even completely banned.

It will also require Consumer Affairs Victoria to review its approach to unfair contracts.

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Telstra predicts monopoly in the skies

toy-planeACMA today amended the Mobile Phone Jammer Prohibition in a step towards in-flight mobile phone services in Australian airspace.

The Prohibition basically outlaws selling, using or possessing mobile phone jamming equipment.  Today’s amendment creates an exception for devices that will lock mobiles on aircraft out of the standard GSM range and force them to use a transmission relay service installed in the plane.

Telstra agrees that in-flight calls would be a good thing, but reckons the new law does little but create a service monopoly for the operators of Cellular RF Management Units (CRFMUs) that force handsets to roam onto mini-mobile phone cells in the skies, and risks waves of call drop outs on the ground as aircraft fly over terrestrial GSM towers.

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Advertising substantiation notices: Coming to a national regulator near you

When the ACCC suspects a CSP is breaching the Trade Practices Act with unacceptable advertising, one of its main weapons is to issue a ‘section 155 notice‘.

It’s a bit like a subpoena and even a search warrant and requires the CSP to provide detailed documents, records and other information that may show it is in breach.

Now the Federal Government has agreed to give the regulator an even more effective power that will change the way CSPs need to approach advertising.

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New prices advertising law passed in Federal Parliament

The Trade Practices Amendment (Clarity in Pricing) Bill 2008 was passed by Federal Parliament on 11 November 2008.  It will come into force within the next few months – date to be announced.

The new law amends the Trade Practices Act 1974 to mandate advertising of a single buy price for certain goods and services.

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