Internet dumping burning unsuspecting consumers

What are the rules?

There are a couple of factors adding the the difficulties faced by legislators when it comes to combatting Internet dumping practices.

Governments often come under fire for attempting to regulate the Internet, as it's perceived as both unworkable and a form of censorship. And while other industries have been around for decades, allowing ample time to sort out the nuances of regulations, the Internet is still effectively less than a decade old.

Premium number services which provide access to the 190 numbers are regulated by the Telecommunications (Consumer Protection and Service Standards) Act 1999, which required telephone sex lines to preregister potential customers and provide them with an access PIN.

According to Robbie Swan, media director of the Eros Foundation, the regulations set out in 1999 resulted in a collapse of the industry. Before the legislation 1.4 million calls per month were made to ten or twenty service providers, and just six months after it was brought in only 35 people had registered with the scheme. He claims the scheme removed an essential part of the service, that of privacy.

However, the legislation does not cover 190 numbers accessed over the Internet, and leaving ample room for service providers to take advantage of what is essentially a legal loophole and claw back some of their revenue. What's more the Internet provides the added advantage that consumers don't have to physically dial in the numbers.

Teresa Corbin from the Consumer Telecommunications Network believes there are massive flaws with the laws governing this phenomenon. "Some gaps are so big you can drive a tank through them," she said.

Corbin believes the largest problem is the fact the Internet is such a grey area in the law, as it is governed by a combination of State and Federal laws. There has never been a court case against the companies that provide these services in Australia, so legal precedence has yet to be established.

The Government is slowly moving to curb the practice of Internet Dumping. In May this year Senator Alston, the Minister for Information Technology, Communications and the Arts, released for public comment draft regulations proposing 190 numbers only be accessible through a PIN, which was designed to close the loopholes in the legislation.

However, by the time the legislation was released in November, the proposals had changed to a monthly price cap on the charges from 190 services, as well as moves to enshrine the current Code of Practice that regulates the industry into the Telecommunications Act.

Adam Rowbottom, the president of the Telephone Service Providers Association of Australia, told ZDNet Australia   the Code was one of the best in the world for premium rate services, and didn't need the extra strength of being registered in the telecommunications act.

"It's interesting to look at regeristing a code of practice when the telecommunication act and Alston's own thoughts are for self regulation," said Rowbottom. The Australian Communications Authority, the government body which would would enforce such regulations, said it is still waiting on an official direction from the minister's office.

There are several problems the government faces when attempting to regulate Internet Dumping. The first is the ever-changing nature of the Internet, allowing sites to quickly remove or modify material to comply with the law. Content is often based offshore, making regulation of the content and messages very difficult. In addition, pop-up messages are sometimes so brief they are practically impossible to read, yet at the same time serve to satisfy basic legal requirements.

While the move by Senator Alston has focussed some attention on the phenomenon, Australia is still a long way from solving the problem. The concern remains that any new legislation will contain further loopholes, allowing these companies to remain one step ahead of the law, and continuing to leave consumers out of pocket.

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Talkback 9 comments

    If people continue to run prog ...Craig Bailey -- 27/11/02

    If people continue to run programs of questionable origin on their PCs then they deserve all they get. If they're unsure what they're doing, then why the hell don't they ask?
    It's absolutely no use relying on warnings and instructions which are "supposed" to alert the user, because, let's face it, how many of these perpetrators follow the rules?
    If you don't know - ask, it's that simple. I have very few customers ask me about such problems, I presume the rest are still paying off their phone bill.

    I have no compassion. People w ...Andrew Constance -- 28/11/02

    I have no compassion. People who click willy-nilly and run every attachment they get deserve all that happens. These are people who shouldn't be using computers in the first place.

    I have read the other readers ...Anonymous -- 28/11/02

    I have read the other readers emails, howevet they assume that all computers are only used by them, what about those used by children etc. Why dont Telstra just ensure that only voice travels on these lines and not data. If they prohibit ip packets from travelling then they would block such internet abouse/use surley. However for Telstra this is a nice little earner, so why shoud they try and fix it.

    www.stopITnow.com.au ... Stop ...Richard Day -- 08/12/02

    www.stopITnow.com.au ... Stop the Scam !

    An easy effective solution for protection.

    Those that don't take it seriously should do the research. Its a muti-million dollar scam, thats been investigated worldwide and is getting worse.

    How can some people believe that Kids and Teens should know better. Should we all be experts?!

    Of course it's a scam. But it' ...Brian Fidler -- 22/04/03

    Of course it's a scam. But it's just as silly to say you should not get caught. People have been hurt by scams for many years. Dare I mention the great fat removal pill scam or should I just dismiss it by thinking it only hurt fat people?
    Surely all the computer whizzes out there can come up with a solution. Perhaps something that disconnects you when a 190 number is dialed. I'm ultra careful and I got nobbled for $17.

    Sorry craig and andrew, but th ...Nicholas Heath -- 19/08/03

    Sorry craig and andrew, but this is just plain fraud. Expecting people to just "deal with it" is akin to letting the weak and helpless be mugged in the streets. We need to shut these dialers down and regulate this industry. Unfortunately Telstra dosn't want to know about it because it is a huge gravy train and Senator Alston still hasn't applied the guidelines he developed back in 2001! Not a healthy realtionship when the person who owns the company is in charge of regulating it. Another good reason to put Telstra under the hammer.

    This mainly happens to new int ...Anonymous -- 23/09/03

    This mainly happens to new internet users. 2 of my friends have had this happen, they had no idea such things could exist and only realised once the bill arrived. I had warned them not to ever click "yes" to anything, but they just didn't understand the possible implications of an innocent click. They do now......

    Yes they were somewhat stupid but the fact remains, these internet sharks prey on the unsuspecting and naieve, as most con merchants do. And as for Telstra, well they must love it.

    I have followed the debate for ...Anonymous -- 12/10/04

    I have followed the debate for and against, and see that several people have taken the moral high ground along the lines of they (the consumer)deserve all they get & more.

    I too have been badly burned- my young nephew did what most young male teenagers would do given half a chance, and went looking for porn. Yes I did explain the risks involved with the internet in detail, and frankly thought that he would do the right thing and have enough common sense to stay well clear of anything that required him to agree to anything, and NOT to download ANYTHING.

    He freely admits to looking at a porn site but is adament that no warning was given about the cost and that he did not purposfully go out and download a dialer. As much as I am disapointed in his actions, I still feel that his version of events is fair more likely to be factual than the Service Provider who can't even tell me what site he actually accessed yet still expects payment.

    I understand that not everyone ...Anonymous -- 01/06/05

    I understand that not everyone is an IT expert but you dont need to be nowadays to keep track on what your doing on the internet, theres a myriad of programs all offering protection against this kind of thing, I think the people who thought up this scam in the first place should be rewarded for the inginuety. :)

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