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ACCC issues smart phone charges warning

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AAP

The latest crop of so-called smart phones may not be such a smart choice when it comes to the size of the bill, the consumer watchdog warns.

The launch of the Apple iPhone has prompted the Australian Competition and Consumer Commission (ACCC) to warn of the potential for phone users to be stung by additional charges.

The watchdog said the emergence of smart phone technology had given rise to a variety of consumer protection issues.

"The ACCC is particularly concerned that consumers may be misled if they are not made sufficiently aware that their data allocations can be exceeded - at significant cost," chairman Graeme Samuel said.

"In the case of smart phones, consumers can download greater amounts of information from the internet than ever before. With this, comes the potential for them to exceed their phone plan value and incur considerable additional charges."

Mr Samuel's comments echo concerns about raised by Business Spectator on July 11 in "The great iPhone rip-off".

The ACCC already has written to telecommunications carriers about its concerns over consumers receiving misleading information on data usage charges.

Mr Samuel said that before consumers decide on which handset or plan to buy they should consider their likely data use and seek guidance from the retailer.

But he said not all carriers offered high-volume data plans, adding that consumers should take note of the excess data usage fees.

"Consumers must think twice before signing contracts with a mobile phone carrier without upfront disclosure of all the fees and charges, including excess data charges," Mr Samuel said.

He said the ACCC would remain vigilant in relation to this new area of telecommunications and would not hesitate to act if it found evidence of consumers having being misled in relation to charges.

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