ACCC takes aim at mobile internet
The ACCC has announced the launch of an Information Paper entitled “Mobile and Other Wireless Internet Speed Claims and the Trade Practices Act 1974″.
The Information Paper has been developed to assist ISPs and Telcos in ensuring that their advertising for mobile and wireless internet is compliant with the Trade Practices Act 1974, and in particular the consumer protection provisions such as s52.
In launching the Information Paper, ACCC Chairman, Graeme Samuel said that:
“The ACCC is concerned by companies over-promising and under-delivering the speeds available on mobile and wireless internet, particularly in the context of network upgrades and increasing wireless internet subscriptions,” “This Information Paper is intended to assist the whole industry – mobile and wireless internet retailers, resellers, and network owners – to comply with the law.”
The ACCC has warned ISPs/Telcos not to advertise terms such as ‘maximum’, ‘up to’ or ‘peak network’ speeds, “if those speeds are not generally achievable or likely to be achieved by consumers using the network.”. The ACCC warning indicates that it is taking a similar approach to that previously taken with ADSL2+ advertising.
The ACCC has expressed the view that ISPs/Telcos should:
- only make speed claims based on ‘appropriate tests of network performance’ to show speeds that can generally be achieved; and
- prominently state the factors affecting mobile and wireless internet speeds such as congestion, location, and other variables.
The Information Paper also contains an Industry Checklist to assist with compliance – ISPs/Telcos are reminded that they should also remember to ensure compliance with CommsAlliance Code C628:2007 TCP Code (Prices Terms and Conditions). Significant effort must be applied in light of the ACCC’s warnings and recent actions in securing enforceable undertakings against some of Australia’s largest ISP/Telcos.
Web Ace aced by ACMA
The Australian Communications and Media Authority has flexed its Telecommunications Act muscles against ISP Web Ace, directing it to comply with the billing rules under the Telecommunications Consumer Protections Code.
Web Ace is the trading name of Jason Kenneth McKay of Perth, WA. ACMA says that McKay has been extracting payments from customer credit cards without authority, and failing to refund.
The issue was first publicised on Whirlpool, the Australian internet users’ town square. In May 2008, Whirlpool user ‘yabbitboy’ posted:
I am signed up to webace’s email only plan ( $60 a year ), I get unauthorized billings by webace 4 times already, 4*$60. I had contacted them by email – never got replied and also tried contacting them by phone – I do speak to them by person to person but they said they are ‘busy’ and say they will call me back which is *******.
ACMA has now used its power to direct McKay not to extract payments without issuing a bill and in accordance with customer authorisation.
ACMA launches premium SMS offensive
The 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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Complaint handling: Lessons for CSPs
The TIO recently released its complaints data for the December 2008 quarter, which identifies problem areas for ISPs and telcos – one of those is complaint handling.
The report is a good opportunity to review what’s required of CSPs by the Telecommunications Consumer Protections Code.
Test yourself: Does a telco or ISP have to undertake a customer credit assessment ?
With tougher times upon us, credit management and credit obligations should be at the forefront of every telco and ISP’s mind. So does a telco or ISP have to undertake a customer credit assessment ?
Hint - the Telecommunications Consumer Protections Code (C628:2007) (‘TCP Code’) has the answer.
Test yourself: Who is a Consumer and what is a Consumer Contract ?
One of our recent posts raised an interesting question which many ISPs and telcos seem to overlook; Who is a ‘Consumer’ under the CommsAlliance Telecommunications Consumer Protections Code 628:2007 (the “TCP Code”) ?
The answer has some pretty serious consequences.
When the word ‘Consumer’ is used, one usually thinks mum, dad and the kids, right ? Well, its potentially more like mum, dad, the kids, the local milk bar operator, the local accountant, the local builder and the local solicitor, just to name a few under the TCP Code. So this puts a heap of contracts for telecommunications services into the contracts with ‘Consumers’ pile.
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Test yourself: How far back can a telco or ISP back bill ?
How far back can a CSP go in billing charges after the billing period in which they were incurred ?
Clue … there’s a Communications Alliance Code that’s relevant, and a TIO policy.