The mobile telecommunications industry is committed to a socially responsible industry that promotes safe, responsible and affordable use of mobile phones and is in step with community needs and expectations, AMTA Chief Executive Officer, Chris Althaus, said this week following the release of consumer advice on mobile premium services.

On Thursday, the Competition Policy & Consumer Affairs Minister, Chris Bowen, welcomed the consumer advice - Your Consumer Rights: Mobile phone premium services - put together by the Australian Competition and Consumer Commission (ACCC) and the Australian Communications and Media Authority (ACMA).

Mobile premium SMS services offer entertainment, news, games, competitions and other content, and often cost more than standard SMS messages.

"There is quite some concern in the community, particularly among young people, about mobile premium services," Mr Bowen said.

"The ACCC fields quite a lot of complaints from consumers who have been confused or misled by certain marketing techniques surrounding mobile premium services.

"At times, the lack of proper disclosure of terms and conditions may mislead consumers in breach of the Trade Practices Act."

Mr Althaus said AMTA was committed to meeting customers’ expectations of trust and confidence in mobile telecommunications services including robust consumer safeguards.

“The mobile telecommunications industry has worked with government agencies and consumer bodies to identify and address consumer protection issues. AMTA will continue to focus its efforts on being proactive and responsive regarding consumer safeguards and systems for the responsible supply and use of mobile premium content,” he said.

“Our industry is concerned that unethical and illegal practices by companies, which are not AMTA Members, can damage our industry’s reputation and detract from the provision of a range of genuine premium services that comply with the law and meet community standards.”

The Australian Communications and Media Authority oversees an enforceable Code for the provision of premium mobile services. AMTA supports the Code and has been involved in its design and implementation. The Code is under review and AMTA is involved in considering further measures to protect consumers.

Mr Bowen said the consumer watchdog, the ACCC receives a consistently high number of complaints about mobile premium services. These include:

• Complaints from consumers who have unwittingly subscribed to an ongoing subscription, believing it to be a 'one off', and have received an unexpectedly high bill as a result. These consumers may not have had important terms and conditions properly disclosed to them.

• Consumers who have experienced difficulty unsubscribing from premium services, or who have received unsolicited messages.

Mr Althaus said it was important for people to be fully aware what they were signing up to. “People should ensure that they check the fine print of any offer before signing up.” People should ask:

• Is it a one-off cost or are you signing up to the ongoing cost of a subscription service?
  
• If it is a subscription service, is there a minimum term?
  
• How does the pricing work? Are you paying to receive calls and messages as well as send them?
  
• What is the total cost of the service?
  
• How do you opt out or cancel the subscription?

“Remember, does the offer sound too good to be true? If you have received an offer that is too good to be true – it probably is!,” he said:

• Be wary of “free” offers. Are they really free or are you paying for them elsewhere?
  
• If you read the words “T&Cs apply“ or “Conditions apply”, find out what they are because the offer may not be so tempting when you consider all the terms and conditions.

Mr Althaus said if people received unsolicited text message they could be illegal because it contravened the Spam Act 2003. AMTA members do not engage in this practice.

People who receive such unsolicited messages should advise the Australian Communications and Media Authority (ACMA), which is responsible for enforcing the Spam Act. It can be contacted on: 1300 850 115 or via the website www.acma.gov.au

Mr Althaus said if people receive an unusual text message from a number they do not recognize they should:

• Check the number before replying, particularly if all you can see is a name.
  
• If the number begins with “19” it is a premium rate service and you are likely to be charged a higher rate for a text or call. You may be charged for future text messages that you receive as well as messages you send.
  
• If you don’t think you subscribed to the service, it could be a scam.
  
• Check if your mobile phone company offers a service allowing you to check a number to find out which company sent the text.
  
• Text the word “STOP” for any service you don’t want that uses a ‘19’ number.

Legitimate commercial messages from Australian businesses are required by law to include such information as:

• The name of the organization or individual who sent the message
  
• Contact details
  
• A way of opting out.

If you receive a SMS or MMS message offering products or services that do not include these items, it is spam and could be a scam.

Always check your bill for any charges you did not authorise. Premium rate calls and subscription services should be included on your bill. Contact your mobile phone company if you have any questions.

Check if your mobile phone company can place a monthly spending limit on premium SMS services. Some mobile phone companies impose an automatic monthly spending limit on the total bill; the limit may be lowered if requested.

Mr Althaus said: “Finally – and very importantly – mobile phone customers should be careful when registering their phone details with any organization, signing up or giving out their details. Read the fine print to find out how your mobile number will be used. Remember, protect your number because prevention is the key.”