Crackdown on SMS vultures at last

THE communications and media watchdog has approved measures to protect consumers from being slugged with high charges from premium SMS services.

The Australian Communications and Media Authority yesterday approved a package of measures to address consumer concerns on premium SMS services.

The measures will provide the watchdog with a comprehensive framework to monitor alleged offenders and the power to issue service provider determinations.

The determinations will require mobile carriers to provide an option to bar premium SMS services on all mobile phone plans by July 1 next year.

The measures will also grant ACMA the power to ban repeat premium SMS offenders from operating in the market.

Premium SMS suppliers who failed to comply with the new rules would also run the risk of penalties of up to $250,000, ACMA said.

Finally, the measures include a new mobile premium services code which will give ACMA legal force from July 1. The code was developed in co-operation with the telecoms industry.

"With a registered code in place, consumers can be secure in the knowledge that the standards and protections outlined in the code are mandatory and will be enforced by the ACMA," Communications Alliance chief executive Anne Hurley said.

Communications Minister Stephen Conroy welcomed the new rules. "New enforceable rules will provide a better deal for consumers when it comes to services such as premium messages," he said. "Misleading practices in the mobile industry will not be tolerated and providers must ensure better protection for consumers."

Telstra also welcomed the new code. "Telstra has led the sector in the responsible provision of premium SMS services, operating under our own code of conduct that went beyond standard industry practice," a Telstra spokesman said.

Telstra plans on enacting new internal measures from next month to safeguard consumers from unintentional premium SMS service subscriptions. One of those measures includes a process to terminate providers that have had continued high and unacceptable complaint levels associated with their services.

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