22 October 2008
Dodo pays penalty for calling numbers on the Do Not Call Register
Telecommunications provider Dodo Australia Pty Ltd has paid a penalty of $147,400 after the Australian Communications and Media Authority alleged that an offshore call centre made telemarketing calls on its behalf to numbers on the Do Not Call Register.
After investigating numerous consumer complaints, ACMA issued an infringement notice to Dodo Australia for allegedly contravening the Do Not Call Register Act 2006. This is the largest penalty paid since the Do Not Call Register legislation took effect in May 2007.
‘The penalties for calling numbers on the Do Not Call Register can be very high,’ said Chris Chapman, ACMA Chairman. ‘ACMA is committed to enforcing this legislation and will take formal action – which may include imposing substantial penalties - where appropriate.’
ACMA has also accepted enforceable undertakings given by Dodo Australia under the Telecommunications Act 1997 that set out the steps it will take to comply with the Do Not Call Register legislation.
ACMA sees enforceable undertakings as an important regulatory tool which can result in effective outcomes and encourage a culture of compliance.
Mr Chapman noted that while Dodo has paid a financial penalty in this case, the penalties could have been much higher if the matter had proceeded to court. ‘Dodo has cooperated with ACMA’s investigation, paid the specified penalty, and taken some very positive steps to amend its procedures. It has avoided costly court action, and responded proactively to the issue.’
As Dodo Australia has paid the penalty and taken steps to address the issues, ACMA’s investigation of the matter is now closed.
‘If you are in business and hire offshore call centres to make telemarketing calls, you need to be extremely diligent in overseeing what they do,’ said Mr Chapman. ‘You can’t hide behind offshore call centres, because ultimately the calls they make are your responsibility.’
If a business decides to use offshore call centres to make calls, it will be responsible for the calls that those call centres make. There are some steps a business might take to protect itself:
- establish clear, enforceable contractual terms that require the call centre to comply with the Do Not Call Register legislation;
- set up effective procedures for checking numbers against the register;
- train all relevant staff – in Australia and overseas - about their obligations; and
- most importantly, regularly audit the call centre’s calling records to make sure they are not calling any numbers they shouldn’t be.
Media contact: Donald Robertson, ACMA Media Manager, (02)9334 7980.
Backgrounder
Under the Do Not Call Register legislation individuals can list their Australian fixed line or mobile telephone numbers on the Do Not Call Register, provided those numbers are used mainly for private or domestic purposes, for example, calls to family and friends. Registration allows individuals to opt out of receiving a wide range of unsolicited telemarketing calls. Registrations are valid for three years, and can be withdrawn at any time.
From 31 May 2007, it became illegal, in the absence of consent, for any non-exempt telemarketer in Australia and overseas to contact a number listed on the register.
ACMA is responsible for overseeing the register’s operation and investigating breaches of the Do Not Call Register legislation.
ACMA’s general approach to compliance is to seek to resolve a matter, where appropriate, without resorting to formal procedures. Where complaints are received, ACMA issues an advisory letter to the relevant business providing it with an opportunity to review its compliance processes and address the apparent issues.
Where an informal approach to a business has not been effective in addressing the apparent compliance issues, ACMA undertakes a formal investigation into the matter. There are a number of enforcement options available to ACMA, which include:
- issuing a formal warning;
- accepting enforceable undertakings;
- issuing an infringement notice, which specifies a financial penalty; or
- commencing proceedings in the Federal Court or Federal Magistrates Court.
ACMA can issue an infringement notice where it has reasonable grounds to believe a business has failed to comply with the Do Not Call Register Act 2006. In giving an infringement notice, ACMA is merely alleging that the business has failed to comply with the law. An infringement notice is not a finding of guilt, and payment of the penalty is not an admission of guilt by the business. If the penalty is not paid, ACMA may commence court proceedings, and the court will determine whether the business has contravened the legislation.
During 2007–08, there were a total of 28,804 complaints received. Of these, 23,336 raised potential breaches of the DNCR Act and/or industry standard and were handled by ACMA. The remainder (5,468) were handled by the register operator.
Complaints are largely driven by systemic non-compliance within a relatively small section of the industry, with 5 per cent of the businesses ACMA has received complaints about responsible for about 70 per cent of the total complaints received. ACMA’s formal investigations are focusing on these businesses.
