032/06
21 April 2006

Credit Management Code—Protection from high phone bills

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, today welcomed the registration of a revised code of practice to protect consumers from unexpected high phone bills.

The Australian Communications and Media Authority (ACMA) has registered the Credit Management Industry Code to help manage consumer expenditure and usage, and where appropriate, require credit assessments to be undertaken to help determine the most appropriate level and type of service for a customer.

“In August last year, I wrote to the CEOs of every major service provider making clear the Government’s expectation of an effective code of practice to protect consumers, especially young people, from unexpected high bills. The CEOs were also informed that the Government would consider direct action if an effective code was not implemented soon,” Senator Coonan said.

“I applaud industry and consumer representatives, as well as ACIF, for working together to develop a set of rules to protect consumers.

“Registration of the revised Credit Management code is an important achievement in the Government’s self-regulatory regime for telecommunications. It represents the culmination of a process in which industry and consumer representatives worked together to protect consumers from unexpected high phone bills,” Senator Coonan said.

“The revised code will guide industry on how to prevent consumers from getting into financial difficulty, as well as how to assist consumers experiencing financial hardship when paying their accounts.”

The revised code will complement existing rules developed by ACMA that require industry to inform consumers about the financial risks associated with premium services, the actions customers can take to lessen these risks, and how to unsubscribe from unwanted services.

“Registration of the code means that service providers may now be directed by ACMA to comply with the code rules. Failure to comply with such direction may attract a substantial penalty,” Senator Coonan said.

Registration of the code also means that ACMA is satisfied that the code provides appropriate community safeguards, that adequate consultation has taken place, and that consideration has been given to the views of the Australian Competition and Consumer Commission, the Telecommunications Industry Ombudsman, the Privacy Commissioner, industry stakeholders, consumers and members of the public.

“The Government will continue to monitor industry developments and respond appropriately in the best interests of consumers,” Senator Coonan said.

The Code is available from the Australian Communications Industry Forum website at www.acif.org.au and on the ACMA website at www.acma.gov.au.