People who sign a three-year contract with a mobile phone company should reasonably expect a handset warranty to last for three years, the Chairman of the Australian Competition and Consumer Commission, Graeme Samuel, told radio station 5AA in Adelaide today.

Leon Byner, the host of the morning radio show, said he was running a campaign against mobile phone sellers who were guilty of “unethical and illegal” behaviour in selling mobile phone handsets that were faulty or not fit for the purpose they were sold.

Mr Samuel said customers had a reasonable expectation that if they entered into a two or three-year contract that their handset would work for that period and be covered by warranty against faults.

He said the ACCC was examining testing in court potential misrepresentation by mobile phone companies. He called on customers who had issues with their mobile phone to contact their Office of Fair Trading and to contact the ACCC’s complaints line on 1300 302 502.

Mr Samuel said there were “16 million” mobile phone handsets and you would expect there to be several hundred complaints about their operation. He said complaints against telecommunications companies topped the list of complaints received by the ACCC.

AMTA Chief Executive Officer, Chris Althaus, the mobile telecommunications industry is keen for mobile users to have a positive experience when using their products and services. “Unfortunately, problems do occasionally arise. AMTA provides advice for consumers who believe they may have a faulty mobile phone handset. “

Advice for consumers.

Mr Althaus said by linking warranties to contractual periods rather than handsets raised a potential anomaly because more than half of mobiles services were pre-paids, where consumers did not enter into contracts.

“Is it fair or reasonable that a person who chooses to have a pre-paid because it suits their purposes should be disadvantaged by being eligible for a shorter warranty period than someone who chooses to enter a post-paid mobile service? I think this has potential implications for competitive neutrality,” he said.

Mr Althaus said AMTA was willing to engage with authorities, such as the ACCC, to ensure that practical and workable solutions were found that did not unnecessarily burden the industry with costs being inevitably passed on to consumers.

of March 2008.