Australian Communications Authority (Service Provider Determination) Direction 2004 (No. 1)

Administered by Department of Communications and the Arts

Legislation au F2004B00514 Not in force Legislative Instrument

Legislation content

Commonwealth of Australia

 

Australian Communications Authority Act 1997

 

Australian Communications Authority (Service Provider Determination)

Direction 2004 (No. 1)

 

I, DARYL ROBERT WILLIAMS, Minister for Communications,  Information Technology and the Arts, make the following Direction under subsection 12(1) of the Australian Communications Authority Act 1997 (the Act) in relation to the performance by the Australian Communications Authority (ACA) of its functions and the exercise by the ACA of its powers under sections 6 and 9 of the Act.

Dated 13 April 2004

 

DARYL WILLIAMS

Minister for Communications, Information Technology and the Arts

_________________________________________________________

1                                  Name of Direction

This Direction is the Australian Communications Authority (Service Provider Determination) Direction 2004 (No. 1).

2                                  Commencement

This Direction commences on gazettal.

3                                  Revocation of the Australian Communications Authority (Service Provider Determination) Direction 2003 (No. 1)

The Australian Communications Authority (Service Provider Determination) Direction 2003 (No. 1) is revoked.

4                                  Definitions

In this Direction:

ACIF means the Australian Communications Industry Forum.

Act means the Telecommunications Act 1997.

carriage service has the same meaning as in the Act.

carriage service provider has the same meaning as in the Act.

content service has the same meaning as in the Act.

geographic number has the same meaning as in the Telecommunications Numbering Plan 1997.

industry body means a body or association that represents a particular section of the telecommunications industry.

international number means a number that includes an international access code.

premium service means:

(a)          a carriage service or content service using a number with a prefix starting with ‘190’; or

(b)         a carriage service used to supply:

(i) a content service; or

(ii) another service by way of a voice call (including a call that involves a recorded or synthetic voice);

using a number that includes an international access code; or

(c) another carriage service or content service determined in writing by the Minister for the purposes of paragraph 3.12(1)(c) of the Regulations.

Regulations means the Telecommunications Regulations 2001.

telecommunications industry has the same meaning as in the Act.

5 Service provider rules – 190 and international services

(1)         The ACA must make a service provider determination as soon as practicable under section 99 of the Act in accordance with this Direction in relation to:

(a)          the matter specified in paragraph 3.12(3)(d) of the Regulations; and

(b)         the matters specified in regulation 3.11 of the Regulations to the extent that they relate to the matter specified in paragraph 3.12(3)(d) of the Regulations.

(2)         The service provider determination must set out a rule requiring a carriage service provider to provide information to its customers about:

(a)          the risks associated with those services covered by paragraphs (a) and (b) of the definition of premium service in clause 4; and

(b)         the action that those customers can take to lessen the risk of unexpected high bills for those services.

(3)         The rule mentioned in subclause (2) may specify a method or way in which the carriage service provider must provide the information mentioned in that subclause.

6 Service provider rules – Services determined by the Minister

(1)         The ACA must make a further service provider determination as soon as practicable under section 99 of the Act in accordance with this Direction in relation to:

(a)          the matter specified in paragraph 3.12(3)(d) of the Regulations; and

(b)         the matters specified in regulation 3.11 of the Regulations to the extent that they relate to the matter specified in paragraph 3.12(3)(d) of the Regulations.

(2)         The service provider determination must set out a rule requiring a carriage service provider to provide information to its customers about:

(a)          the risks associated with those services covered by paragraph (c) of the definition of premium service in clause 4; and

(b)         the action that those customers can take to lessen the risk of unexpected high bills for those services.

(3)         The rule mentioned in subclause (2) may specify a method or way in which the carriage service provider must provide the information mentioned in that subclause.

7 Matters to be investigated, and reported on, by the ACA

The ACA must investigate and report to the Minister within 6 months after the commencement of this Direction on:

(a)          actions taken by carriage service providers, either individually or through ACIF or other industry bodies, to address Internet dumping involving the use of geographic numbers or international numbers; and

(b)         the appropriateness of a service provider determination being made under section 99 of the Act to require carriage service providers who provide access to international numbers to bar access to certain international numbers, or to a certain class or range of international numbers, used to provide premium services; and

(c)          credit management measures that the telecommunications industry has in place or is developing to address unexpected high bills for carriage services or content services, including:

(i)                a more comprehensive assessment of customers’ ability to pay bills in relation to the supply of carriage services or content services; and

(ii)              the offering of credit or billing limits; and

(iii)           the offering of options to bar access to higher cost services; and

(iv)            so far as is practicable, the offering of caps on charges for certain categories of service, such as premium services or calls to international numbers; and

(v)              so far as is practicable, the offering of a cap on the charge for an individual telephone call; and

(vi)            more comprehensive monitoring of customers’ spending on carriage services or content services and measures to advise customers if their use of such services is unusually high; and

(vii)         improved information to customers about the risk of unexpected high bills for carriage services or content services and actions that customers can take to lessen this risk; and

(viii)       the offering of monthly or more frequent billing as an option; and

(d) the nature of plans developed by the telecommunications industry to implement the credit management measures specified in paragraph (c), including the implementation timetable; and

(e) whether the ACA considers that the action and commitment of the telecommunications industry to implement the credit management measures specified in paragraph (c) have been adequate; and

(f) any regulatory measures that may be desirable to ensure comprehensive and timely reform to address the problem of unexpected high bills for carriage services or content services.

 

Overview

The Australian Communications Authority (Service Provider Determination) Direction 2004 (No. 1) was introduced by the Minister for Communications, Information Technology and the Arts under subsection 12(1) of the Australian Communications Authority Act 1997. This legislative instrument was enacted to address issues surrounding unexpected high bills for premium services, including those involving 190 and international numbers, and to investigate credit management measures within the telecommunications industry. The policy objective of this Direction is to ensure that carriage service providers adequately inform their customers about the risks associated with premium services and the steps they can take to mitigate these risks. The Direction also mandates the Australian Communications Authority to investigate and report on industry practices related to Internet dumping, credit management measures, and potential regulatory reforms to address unexpected high bills. The Direction commenced on the date of its gazettal and revoked the previous Direction issued in 2003.

Scope and Application

The Australian Communications Authority (Service Provider Determination) Direction 2004 (No. 1) applies to the Australian Communications Authority (ACA) and its functions under the Australian Communications Authority Act 1997. The Direction mandates the ACA to make service provider determinations regarding the provision of information to customers about the risks and potential actions to mitigate unexpected high bills associated with premium services. These premium services include carriage or content services using numbers with specific prefixes and international access codes. The Direction extends to carriage service providers who must provide specified information to their customers to ensure transparency and consumer protection. The geographic and jurisdictional reach of this legislation is national, as it operates within the Commonwealth of Australia. The Direction does not specify any exclusions or exemptions; however, it does allow the Minister to determine additional services subject to the rules through written determinations. The Direction also mandates the ACA to investigate and report on various measures and strategies within the telecommunications industry to address issues like Internet dumping and unexpected high bills.

Key Provisions

The Australian Communications Authority (Service Provider Determination) Direction 2004 (No. 1) (the Direction) sets out specific requirements for the Australian Communications Authority (ACA) in relation to the provision of information to customers about certain high-risk telecommunications services. Section 5 of the Direction requires the ACA to make a service provider determination regarding the information that carriage service providers must provide to their customers about premium services, including those using a number with a prefix starting with '190' and services using international access codes. This includes details on the risks associated with such services and the measures customers can take to avoid unexpected high bills (Section 5(2)). Similarly, Section 6 mandates a further service provider determination for services determined by the Minister, requiring carriage service providers to inform customers about the risks and protective measures for these services (Section 6(2)). The Direction imposes several obligations on the ACA and carriage service providers. The ACA is tasked with making these service provider determinations under Section 99 of the Australian Communications Authority Act 1997 and must set rules that require carriage service providers to provide specified information to their customers (Sections 5(1) and 6(1)). Carriage service providers, in turn, are required to comply with the rules set by the ACA, ensuring they inform their customers about the risks of using certain premium services and the steps they can take to mitigate these risks (Sections 5(2) and 6(2)). Additionally, the ACA must investigate and report on various matters, including actions taken by carriage service providers to address issues like internet dumping and the effectiveness of credit management measures in preventing unexpected high bills (Section 7). Failure to comply with the requirements set out in this Direction can result in various consequences. Although the Direction itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance, the overarching legislation, the Australian Communications Authority Act 1997, provides a framework for enforcement. Under the Act, breaches of service provider determinations made by the ACA can lead to significant penalties. For corporations, the maximum penalty can be up to 500 penalty units ($111,000 as of 2024) for each day of non-compliance, while individuals can face penalties of up to 50 penalty units ($11,100) for each day of non-compliance. Additionally, the ACA may take further regulatory actions or seek court orders to enforce compliance with the service provider determinations.

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