ACMA fines company for actions of telemarketing provider

 


An internet service provider (the company) has had to pay almost $150,000 after its offshore call centre made calls to numbers on the Do Not Call Register. The fine was imposed by the Australian Communications and Media Authority (ACMA) for breach of the Do Not Call Register Act 2006 (Cth) (Act).

The Act established the Do Not Call Register, which allows Australians to list their personal home and mobile telephone numbers, making it illegal for telemarketers to call those numbers.

This is the largest penalty paid since the Act came into force in May last year and shows ACMA’s willingness to impose substantial penalties for breaches of the Act. ACMA’s investigation was initiated after it received more than 100 complaints against the company—a seeming indication that consumers are sensitive to unwanted telemarketing and are prepared to report the perpetrators.

The penalty shows clearly that businesses that engage external call centres ultimately remain responsible for the calls made by the call centres. Businesses using external call centres need to be diligent in overseeing the calls made on their behalf. ACMA recommends the following steps:

  • contractually require the call centre to comply with the Do Not Call Register
  • establish procedures for checking numbers against the Do Not Call Register
  • conduct training on how to meet the obligations, and
  • regularly audit the records of numbers called to ensure compliance.

ACMA Chairman Chris Chapman noted that the company’s penalty could have been much higher if the case had gone to court. He said the company’s cooperation with the investigation and provision to ACMA of enforceable undertakings on compliance prevented escalation of the matter to court.

This article was written by Kaman Tsoi, Senior Associate and Carol Burnton, Articled Clerk, Melbourne.

For information regarding possible implications for your business, contact

Kaman Tsoi
Special Counsel, Melbourne
Direct +61 3 9288 1336
kaman.tsoi@freehills.com
 
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