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Cold Callers and Telemarketers - Beware
A collective sigh of relief sounded out across Australia on 31 May, when the Australian Communications and Media Authority (ACMA) began full enforcement of the federal government’s “Do Not Call Register”.
The initiative, which was launched on 3 May by the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, allows consumers to register their phone numbers to opt-out of receiving unsolicited telemarketing and research calls. Telemarketers found to be defying the register will face escalating penalties of up to $1 million.
The Do Not Call Register Act 2006 (Cth) and the Do Not Call Register (Consequential Amendments) Act 2006 (Cth) follow growing public concern over the increasing level of telemarketing activity, which is now governed by a new industry standard.
Perhaps public reception to this legislation, particularly in Victoria and New South Wales, would not have been so enthusiastic if people had been more aware of the consumer protection measures that already exist in the area of telemarketing through the operation of the Fair Trading Act 1999 (Vic) (FTA).
Protection of consumers in the telemarketing environment was first prioritised in the Victorian government’s Fair Trading (Further Amendment) Act 2003 (Vic) (the Act), which amended the Fair Trading Act 1999. It made clear definitions for an industry standard in a number of matters now further supported by the Do Not Call Register. They include:
- Permitted hours – the Act prohibits suppliers and their representatives from contacting a person before 9am, after 8pm on weekdays, after 5pm on weekends and on public holidays;
- Duty to cease telephone marketing – the Act requires suppliers and their representatives to “cease negotiations” immediately on request and refrain from calling that person for 30 days (exemptions to this standard apply).
Despite the fine-tuning of regulations, there are still issues that exist for suppliers and call centre operators, particularly those operating nationally. Problems are likely to arise in the event of: concurrent telemarketing campaigns for different products from one supplier; call repetition from separate operators representing the same supplier or call centre; and confusion with customer information that differs between product lines. The onus is clearly on suppliers to develop comprehensive non-duplication techniques. In addition, clear operational policies, open communication channels between business areas, regular training for operators and maintenance of IT systems are encouraged.
Just as important to the regulation of telemarketing activity is the customer’s awareness of the action they can take when a breach occurs. Consumer Affairs Victoria has been the traditional point of contact for disgruntled customers under the FTA. The Do Not Call Register now provides a clear preventative measure.
As teething issues of the system are dealt with and the effectiveness of the register is assessed, protection for consumers will remain at the top of the agenda. The only remaining issue is one of industry compliance, best managed by harmonising legislation with industry self-regulation.
More information:
Useful web links: To register visit www.donotcall.gov.au
Disclaimer: The information in this newsletter is not intended to be a complete statement of the law relating to the issues raised. Accordingly, no person should rely on this information without first obtaining specific advice from Ms Eleanor Coates of our office.
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