The Australian Competition and Consumer Commission has instituted proceedings against Star Promotions Club Pty Ltd alleging breaches of the Trade Practices Act 1974 over the promotion of mobile premium services through scratch cards.

The scratch cards, offering prizes including a holiday, a plasma television or a car were distributed as magazine and newspaper inserts and also letterbox drops.

The ACCC alleges that the scratch cards did not adequately disclose the nature and cost of participating, particularly that anyone responding to the 19 number to claim a prize would be signed up to a premium rate mobile subscription service costing $6.60 per week.

A scheduling conference has been set down for August 28 2009 in the Federal Court in Sydney.

This action against Star Promotions Club follows other ACCC actions against a number of mobile premium services providers. These include TMG Asia Pacific Pty Ltd, Teracomm Limited, AMV Holdings Limited and Clarion Marketing Australia Pty Ltd.