ACMA media release 40/2007 - 3 May

3 May 2007

Do Not Call Register launched

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, launched the national Do Not Call Register today.

The Australian Communications and Media Authority is responsible for establishing and overseeing the Do Not Call Register, determining the fees telemarketers will be charged for accessing the register and for investigating breaches of the Do Not Call Register legislation. ACMA is also responsible for developing a national standard for minimum levels of conduct by telemarketers and research callers.

The Do Not Call Register enables individuals with Australian fixed line and mobile numbers to list their fixed and mobile telephone numbers on the register and opt out of receiving a wide range of telemarketing calls.

Registration of a telephone number is easy, quick and free.

From today, individuals are able to register their telephone numbers, if they are used primarily for private or domestic purposes, through the Do Not Call website, at www.donotcall.gov.au or by post.

Individuals will be able to register by telephone from 22 May 2007. It may take up to 30 days for a registration to become effective.

Under the legislated scheme, it will generally be unlawful to make telemarketing calls to numbers placed on the register from 31 May 2007.

Telemarketers will be able to submit their calling lists to the register operator for checking against the register. This process of ‘washing’ calling lists will help telemarketers comply with the Act and will be available from 25 May 2007. Industry ‘washing’ trials are to be begin shortly.

Industry will contribute to the costs of operating and maintaining the Do Not Call Register through the payment of fees for accessing the register determined by ACMA.

ACMA has determined the subscription fees and excess usage charges that apply for accessing the register in the first year of operation. Under the Do Not Call Register (Access Fees) Determination 2007, the annual subscription fees range from $71 (to wash up to 20,000 numbers) to $80,000 (to wash up to 100 million numbers). There is a subscription type that allows telemarketers to check up to 500 numbers per year at no cost.

The access and administrative arrangements supporting the operation of the Register have also recently been finalised by ACMA.

Media contact: Donald Robertson, ACMA Media Manager, on (02) 9334 7980.

Backgrounder

Legislation to establish the Do Not Call Register scheme received Royal Assent on 30 June 2006. The Australian Government introduced the legislation in response to the increasing level of community concern about the growth in unsolicited telemarketing calls.

The government announced funding of $33.1 million over four years for developing and implementing the Do Not Call Register scheme.

Under the Do Not Call Register legislation, ACMA is responsible for establishing and overseeing the operation of the Do Not Call Register and for developing and establishing a national telemarketing and research call industry standard.

The Do Not Call Register allows individuals to register their home and mobile numbers in order to opt out of receiving a wide range of unsolicited telemarketing calls. There is no cost to consumers to register their telephone numbers on the register.

From 31 May 2007, it will be illegal, in the absence of consent, for any non-exempt telemarketer in Australia and overseas to contact a number listed on the register.

ACMA recognises that industry needs time to adjust systems to ensure compliance with the new legislation. ACMA's approach, in the period after commencement of the register and industry standard, will be aimed at ensuring industry is fully aware of the new obligations it faces and answering questions about compliance.

If a regulatory breach occurs, ACMA will (within the limits of the legislation) take regulatory action commensurate with the seriousness of the breach. ACMA's general approach to compliance will be to negotiate and resolve the matter, without resorting to formal procedures. However, if informal resolution is unsuccessful ACMA will take appropriate enforcement action.

The legislation allows a number of limited exemptions to the prohibition to enable certain public interest organisations to make telemarketing calls. Government bodies, educational or religious organisations, registered political parties, independent members of parliament, electoral candidates and charities will all be entitled to these exemptions.

Exemptions also apply where the account holder has consented to a call or where consent can be reasonably inferred.

Market and social researchers will be permitted to call when conducting opinion polling and standard questionnaire-based research. These calls are, however, subject to the national telemarketing standard which commences on 31 May 2007.

For more information about the legislation, refer to the Explanatory Memorandum to the Do Not Call Register Bill 2006 at www.comlaw.gov.au

Do Not Call Register operator

ACMA selected a fully owned subsidiary of Melbourne-based Service Stream Limited to build and operate the Do Not Call Register on behalf of ACMA until February 2011, with an option for an additional three years.

Service Stream Solutions Pty Ltd was awarded the contract following a competitive tender process. Under the contract, Service Stream is responsible for:

ACMA will continue to be responsible for overseeing the register’s operation and investigating breaches of the Do Not Call Register legislation.

As part of its consumer and industry education program, ACMA is working closely with Service Stream to raise awareness of the register.

Do Not Call Register (Access Fees) Determination 2007

In the 2006-07 Budget, funding of $33.1 million over four years was provided to establish and run the register and administer the Do Not Call Register scheme. The Budget anticipated that approximately $15.9 million would be recovered from the telemarketing industry through the payment of fees to access the register.

Under section 21 of the Do Not Call Register Act 2006, ACMA may make a determination setting out the amount of access fees payable for accessing the register. Provision is also made for the determination to provide exemptions from the access fees.

The cost recovery model adopted by ACMA aims to build up to full cost recovery of the Register’s operating costs over four years and recoup part of these costs in the first few years. Industry costs will gradually increase each year until year five where full cost recovery arrangements are planned to be implemented.

On 1 May 2007, ACMA made the Do Not Call Register (Access Fees) Determination 2007 under section 21 of the Do Not Call Register Act 2006. Under the cost recovery arrangements, 58 per cent (or $6.57 million) of a possible $11.4 million in register costs is intended to be recovered from industry over four years. In the first year, ACMA is seeking to recover approximately $860,000 from industry. The costs to be recovered from industry are lower than expected due to the lower than anticipated contract costs in operating the register. The fees are based on annual subscription fees and excess usage fees.

The fees for accessing the register in the first year of operation are set out below

Fees for accessing the Do Not Call Register

ACMA consulted widely with industry before making the determination about fees for access to the Do Not Call Register.

ACMA engaged Access Economics to assist in developing an appropriate access fee pricing model. Access Economics’ recommended pricing structure was an ‘Annual Subscription Fees and Excess Usage Charges’ model which has been likened to an internet ‘broadband’ type of pricing structure. Alternative fee structures considered included a single usage price per number washed.

A copy of the Do Not Call Register (Access Fees) Determination 2007 is available at www.comlaw.gov.au.

Do Not Call Register (Administration and Operation) Determination 2007

Section 18 of the Do Not Call Register Act 2006 enables ACMA to make a determination relating to the administration and operation of the register in relation to a number of matters including the form of applications for telephone numbers to be entered on the register and manner in which such an application can be made.

On 26 April 2007, ACMA made the Do Not Call Register (Administration and Operation) Determination 2007. The Determination is intended to assist in providing industry and consumers with greater certainty in relation to how the register will operate. A copy of the determination is available at www.comlaw.gov.au.

Do Not Call Register (Access to Register) Determination 2007

On 26 April 2007, ACMA made the Do Not Call Register (Access to Register) Determination 2007. The determination sets out the way in which a person wishing to access the register may submit a list of telephone numbers for washing and the manner in which the register operator is to provide the information to the access seeker. The determination was made under section 20 of the Do Not Call Register Act 2006. A copy of the determination is available on www.comlaw.gov.au.