Contents
Cases
Competition
Industry developments
Regulatory developments
Cases
On 28 March 2008, the Federal Court made a declaration that FOXTEL’s special access undertaking (undertaking) for its digital Pay TV set top unit service applies only to those set top units that are actually in use by its customers.
In December 2007, the Federal Court decided to uphold the Australian Competition and Consumer Commission’s (ACCC) acceptance of the undertaking, despite Seven Network’s application to have the ACCC’s acceptance overturned by the court. In the alternative, Seven Network sought a declaration clarifying the scope of the undertaking. This has now resulted in the form of the above.
For further information please visit the ACCC website.
On 28 March 2008, the Australian Competition and Consumer Commission (ACCC) accepted several court enforceable undertakings from the mobile telephone service provider, MobileWorld Operating Pty Ltd (Crazy John’s) which admitted that it engaged in misleading or deceptive conduct in contravention of section 52 of the Trade Practices Act 1974 (Cth).
On 17 January 2008 the ACCC commenced proceedings against Crazy John’s in the Fast Track List in the Federal Court of Melbourne. The conduct complained of involved representing that handsets on some of its ‘Crazy Phone Plans’ were available ‘FREE’ or for ‘$0’ when consumers were effectively paying for the handsets through higher call rates than those available on comparable plans excluding handsets.
Crazy John’s undertakings include the following:
- cease advertising ’FREE‘ or ’$0‘ in a misleading manner
- implement an extensive trade practices law compliance program
- pay $15000 of the ACCC’s legal costs in this matter, and
- compensate consumers who feel they were misled by the ’FREE‘ or ’$0‘ handset advertising campaign.
The last undertaking applies specifically to Crazy John’s customers on the affected 24-month Crazy Phone Plans. These customers will receive a notice from Crazy John’s outlining the misleading conduct and advising them to contact Crazy John’s to receive compensation if they feel they have been affected by the conduct. These customers will receive a monthly credit from Crazy John’s for the rest of their current contract term.
According to Mr Graeme Samuel, Chairman of the ACCC, ’The consumer compensation that has been obtained…would not have been available through court orders.’
For further information please visit the ACCC website.
Competition
On 10 April 2008, the ACCC issued its eighteenth report (report) under the enhanced accounting separation regime for Telstra. The report scrutinises the price and service quality that Telstra offers its retail and wholesale customers. In particular, the report examines whether any anti-competitive systematic discrimination is occurring. Analysis of the imputation tests and the key performance indicators revealed the following findings for the December quarter 2007:
- imputed margins improved on the whole
- service quality in connecting some wholesale fixed-line telephony services declined, but
- otherwise, wholesale customers on average received service levels of an equal or better quality than retail customers.
For further information please visit the ACCC website.
Industry developments
On 26 March 2008, Senator Stephen Conroy, the Minister for Broadband, Communications and the Digital Economy, announced that the government will invest $37.9 million in a strategy to assist Australia’s transition to digital television (digital TV) by 31 December 2013. According to Senator Conroy, 'The analogue to digital switchover…will affect every household and every TV receiver in the nation, including those in VCRs and other recorders.' The funding will be allocated as follows:
| Funding ($)million |
Project |
| 8.5 |
Technical projects by the Australian Communications and Media Authority such as the evaluation of digital TV transmission and reception within Australia |
| 4.8 |
‘Digital Tracker’ who will monitor the level of public awareness of the switchover, households’ willingness to convert to digital TV, actual conversion rates and other issues |
| 1.0 |
Two year research program to investigate problems with the reception of digital TV in apartment blocks that share a TV antenna system |
| 6.7 |
Logo and labelling scheme designed to enable consumers to identify products that are suitable for the switchover to digital TV |
| 16.9 |
Digital Switchover Taskforce to coordinate the program within the Department of Broadband, Communications and the Digital Economy. |
An Industry Advisory Group (IAG) has also been established to work with the Digital Switchover Taskforce in providing reliable information to consumers when they purchase digital TV equipment. The IAG comprises members from the following sectors:
- manufacturing
- broadcasting
- retail
- regulatory
- technical services
- public and commercial housing, and
- government.
The IAG first met on 9 April 2008. It is expected that the IAG will contribute to the resolution of a number of consumer issues relating to the digital switchover including:
- a detailed timetable
- communications
- research, and
- practical implementation.
Further information on the government’s $37.9 million strategy and the IAG is available via Senator Conroy’s website.
Regulatory developments
On 11 April 2008, the Australian Competition and Consumer Commission (ACCC) issued procedural rules and criteria for decision making on the access regime that will apply to digital radio. These draft legislative instruments will seek to facilitate the process outlined below:
- the Australian Communications and Media Authority will allocate digital radio licences to joint venture companies (Multiplex Licensees)
- Multiplex Licensees must lodge an access undertaking with the ACCC, specifying the manner in which access to transmission capacity will be provided for individual digital radio broadcasters in each licence area
- the ACCC will be responsible for assessing the access undertakings according to their criteria for decision making, and
- the ACCC will also have an ongoing role in overseeing the access regime and variations of access undertakings.
The ACCC has invited stakeholders to make submissions on the draft legislative instruments prior to 28 April 2008. For further information please visit the ACCC website.
The Australian Privacy Commissioner, Karen Curtis, has released a draft Voluntary Information Security Breach Notification Guide (guide) for public consultation. When finalised, the purpose of the guide will be to provide public sector agencies and private sector organisations with general guidance on how to respond effectively to an information security breach.
The draft guide has been developed to respond to community concerns about identity theft and identity fraud, and outlines practical steps that agencies and organisations should consider taking when responding to information security breaches. It also provides advice to agencies and organisations about taking appropriate measures to ensure that personal information is kept secure.
There is no specific requirement under the Privacy Act 1998 (Cth) for agencies and organisations to notify individuals of information security breaches affecting their personal information. However, in its review of Australian privacy laws, the Australian Law Reform Commission is currently considering recommending that notification of major information security breaches be mandatory.
While compliance with the draft guide would be voluntary, the guide notes that notifying individuals where an information security breach affects their personal information is good privacy practice and reflects key privacy principles embodied in the Information Privacy Principles and the National Privacy Principles.
The Australian Privacy Commissioner has invited interested stakeholders to provide their comments and feedback on the draft guide by 16 June 2008.
More information
For information regarding possible implications for your business, contact a member of the Technology & Communications team.