115/05
6 October 2005

Minister welcomes draft industry code to address unexpected high bills

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, today welcomed the release of the draft Credit Management Industry Code by the Australian Communications Industry Forum (ACIF) for public comment.

“The release of the draft code is an important step in protecting phone users,” Senator Coonan said.

“I wrote to the CEOs of every major service provider in August to make it clear that the Government expects the industry to develop an effective registered code of practice without delay, to protect consumers, especially young people, from unexpected high phone bills,” Senator Coonan said.

“The CEOs were also informed that the Government would consider direct intervention if an effective code were not implemented soon.

“The industry responded positively and has developed, in consultation with consumer representatives, a comprehensive set of rules to address concerns over unexpected bills for new premium services, such as the ring tones.”

In some cases, unexpected large bills can cause considerable financial hardship and there are growing consumer concerns over some premium services. For instance the popular SMS ring-tone services have caused concern due to the way they are promoted to young people and the difficulties experienced when attempting unsubscribe from some services.

“I congratulate industry participants, consumer bodies and ACIF on their commitment to protecting consumers,” Senator Coonan said.

“The new code will provide guidance to industry on how to prevent consumers from getting into financial difficulty, as well as guidance on ways to assist consumers who experience financial hardship when paying their accounts.”

For the first time, draft code rules 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.

The draft code will complement existing rules developed by the Australian Communications and Media Authority that require industry to inform consumers about the financial risks associated with premium services, the actions customers can take to lessen the risk of unexpected high bills and enable consumers to unsubscribe from services they no longer want.

The draft code has been released for public comment until 4 November 2005, and can be seen at www.acif.org.au/projects/public_comment