Missed call marketers are missing their calling...

By Philippa Hore.

Key Points:
The Australian Communications and Media Authority (ACMA) is currently investigating the controversial practice of "missed call marketing".

The Australian Communications and Media Authority (ACMA) is currently investigating the controversial practice of 'missed call marketing' and has advised two companies that are alleged to have engaged in this practice that it is likely to constitute serious and extensive contraventions of the Spam Act 2003. ACMA reports that the two companies have stopped making these calls while ACMA's investigation continues.

What is missed call marketing?

"Missed call marketing" is the practice of ringing a mobile phone for such a short period of time that it cannot be answered, creating a missed call message with the marketer's phone number. If the recipient of the missed call rings the number back (thinking they have missed a legitimate call), they hear a recorded promotional message.

In the most widespread Australian example, callers who returned the call were told by a recorded message that they would receive a gift of mobile content worth at least $40 and that they may also win up to $10,000. To collect the gift, which included mobile ring tones, the caller had to ring a premium 190 number. In another case, callers were advised of a mobile premium SMS-based dating service operated on a 19 number.

Is missed call marketing legal?

In ACMA's recent media release, Nerida O'Loughlin, General Manager of ACMA's Industry Outputs Division, said that "ACMA has closely scrutinised the missed call marketing practice to determine whether it is in breach of the anti-spam legislation. We believe that it is, and would like to send a clear message to the public and the industry about the legality of this practice."

Ms O'Loughlin also noted that, in many ways, missed call marketing is worse than spam emails that only include a link to a website, as the method of communication is more intrusive and the cost of marketing is almost entirely shifted to the call recipient.

ACMA has now initiated investigations into potential breaches of the Spam Act by two companies that are alleged to have engaged in missed call marketing and has indicated that it will not release further comment about this practice until its investigations are complete.

What can recipients of missed call marketing do?

Complaints about missed call marketing can be lodged on the ACMA website. Complainants are encouraged to leave as much information as possible, including the date and time of the call, the phone number the call was received from and, if the complainant called the number back, the content of the recorded message.

How will the "Do Not Call Register" impact on missed call marketing?

Once the Do Not Call Register is established (which is expected to occur in May 2007), telemarketing companies that call a mobile number listed on the Register will be subject to a range of penalties, including substantial fines. In the meantime, ACMA recommends that members of the public should be wary about returning missed calls from numbers they do not recognise.

For further information, please contact Chris McLeod.