Overseeing compliance with the Do Not Call Register Act 2006 ...
Transcript of Overseeing compliance with the Do Not Call Register Act 2006 ...
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Overseeing compliance with the Do Not Call Register Act 2006
International Training Program
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ACMA—ITU International Training Program 2009Melbourne, Australia
Telemarketing regulation in Australia
Pre-Do Not Call Register
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No industry-specific regulation>
Voluntary Code of Practice
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Some general, inconsistent state-based legislation>
Australian Direct Marketing Association “Do Not Contact Register” (voluntary)
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ACMA—ITU International Training Program 2009Melbourne, Australia
Establishment of Do Not Call Register
DNCR established in response to:>
Community concern about volume and inconvenience of telemarketing
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Industry and consumer confusion about the rules
Objectives of DNCR Scheme:>
Provide a more consistent regulatory environment for industry
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Reduce inconvenience for consumers>
Provide an effective complaint handling mechanism
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ACMA—ITU International Training Program 2009Melbourne, Australia
Operation of the Register
Current arrangements>
“Opt Out” scheme
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Numbers must be primarily for private or domestic use>
Telemarketers submit contact lists for checking (“washing”) prior to dialling
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“Washed” lists are valid for 30 days>
Exemptions
Proposal to extend Register to all numbers (incl. business, fax, emergency services) in 2010
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ACMA—ITU International Training Program 2009Melbourne, Australia
Do Not Call Register Act 2006
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Requires the ACMA to establish the Register>
Sets out two key rules (civil penalty provisions)>
A person must not make or cause a telemarketing call to be made to a number on the Register (s.11(1)) – some exceptions
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Agreements for the making of telemarketing calls must require compliance with the DNCR Act (s.12(1))
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ACMA—ITU International Training Program 2009Melbourne, Australia
“Causing” a call to be made
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Extended definition of “cause” applies where:>
Person A enters into an agreement with another person (Person B)
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Under the agreement, Person B undertakes to make (or cause any or all of its employees/agents to make) telemarketing calls
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Person B, or an employee/agent of Person B, gives effect to the agreement by making a telemarketing call
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Both Person A and Person B may be liable for calls made in contravention of the Act
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ACMA—ITU International Training Program 2009Melbourne, Australia
Complaints received
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
July - Dec07
Jan - June08
July - Dec08
Jan - June09
Complaints Received
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Steady drop in complaint numbers since June 2007
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ACMA—ITU International Training Program 2009Melbourne, Australia
Compliance approach
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Focus is on reducing the number of telemarketing calls people on the Register receive
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Level of regulatory intervention tied to the scale and severity of the compliance issue
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ACMA—ITU International Training Program 2009Melbourne, Australia
Compliance approach
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3-stepped approach to compliance:>
Businesses complained about receive an advisory letter in the first instance, advising them of their legal obligations
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If further complaints are received, a warning letter is sent
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Complaints received after a warning letter is sent may be subject to a full investigation
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ACMA—ITU International Training Program 2009Melbourne, Australia
Enforcement options
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Formal warnings>
Enforceable undertakings
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Infringement notices ($2,200 per call/$110K per day)>
Injunctions
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Federal Court (pecuniary penalties - $11K per call/$220K per day)
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ACMA—ITU International Training Program 2009Melbourne, Australia
Compliance and Enforcement: Challenges
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No discrete “telemarketing industry”>
Wide range of different industries make “telemarketing calls”
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Outsourcing arrangements>
Offshore telemarketing
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Limitations of call tracing capabilities
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Investigation Case Study: Dodo Australia
ACMA—ITU International Training Program 2009Melbourne, Australia
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Pre-investigation
June-September 2007
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Three informal notifications sent
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Continuing high complaint numbers (129 complaints from June-Sept 2007)
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Investigation commenced October 2007
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Decision to Investigate
The problem>
Large-scale, systemic non-compliance across the telco industry - 55% of all complaints
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High level of consumer frustration
The approach>
Telco compliance campaign encompassing:>
Education
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Targeted investigations spread across each level of the telco industry (incl. Dodo)
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Publicity
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: The Investigation Process
The investigations process
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Commencement
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Evidence-gathering
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Opportunity for submissions
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Decision by delegate
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Publicity of outcome
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Commencement
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Investigation focused on three month period in 2007
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Obligation to notify respondent of commencement (Telco Act)
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Statutory notice issued to Dodo seeking information and documents (Telco Act s.521)
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Evidence gathering
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Evidence relied upon>
Dialler disposition records
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Call tracing records>
Consumer complaints
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Call centre contracts>
Call centre scripts
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Evidence ordinarily gathered using statutory powers
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Opportunity for Submissions
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Obligation to provide respondent with opportunity for submissions prior to adverse finding
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Dodo investigation:>
Written allegations by the ACMA
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Meetings to discuss options>
Formal submissions by respondent
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Offer of enforceable undertaking
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Decision by Delegate
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Acceptance of enforceable undertaking>
Engagement of external compliance consultant
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Record keeping>
Auditing
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Use and oversight of outsourced call centres
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Infringement notice issued>
$147,400
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Publicity
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Media release announcing outcome
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Press coverage
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Radio interviews
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30% drop in overall complaints following announcement
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ACMA—ITU International Training Program 2009Melbourne, Australia
Dodo: Post-investigation
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Very few complaints received>
Significantly improved compliance practices>
Record keeping
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Complaint handling>
Auditing
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Oversight of third party call centres>
Overall, representative of “best practice” compliance
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ACMA—ITU International Training Program 2009Melbourne, Australia
DNCR Investigation Challenges
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Evidence gathering>
Technical limitations
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Availability of information
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Cooperation of respondents
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Cooperation of offshore entities
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ACMA—ITU International Training Program 2009Melbourne, Australia
Telco Compliance Campaign
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The campaign:>
Industry specific education
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19 formal investigations>
5 infringement notices
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8 enforceable undertakings>
6 formal warnings
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Publicity>
Creating an environment of accountability
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ACMA—ITU International Training Program 2009Melbourne, Australia
Telco Compliance Campaign - outcomes
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jan - June08
July - Dec08
Jan - June09
Complaints about Telcos
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Drop in complaints about telcos>
From 55% down to 35% of all complaints>
From 2,500 per quarter to 500-600 per quarter
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ACMA—ITU International Training Program 2009Melbourne, Australia
Compliance and Enforcement: 2010
Industry focus:>
Real estate industry
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Call centre industry>
Financial services
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Small businesses
Other activities:>
International engagement
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Transition to expanded Register