Issue Date:  -  Friday, 13 January 2006

Ring up big bill with ring tones competition

Eastern states-based DC Marketing is contacting consumers offering a gift to the value of $40 if they ring the “winners hotline” - a 190 number with call costs of $2.97 a minute or more from mobile phones.

Consumers are not told it takes 4 minutes to find out how to redeem the gift of a package of ring tones.

Consumer Protection Commissioner Patrick Walker said the company’s tactics are highly questionable.

Consumers receive a missed call on their mobile phone from a Sydney or Melbourne number. When they ring back, they are told they have won a gift and a chance to win $10,000 and other prizes. To redeem the gift, they must ring the 190 telephone number.

“We do not like how they operate,” Mr Walker said. “The promoters entice consumers to ring the 190 number with the offer of a so-called gift without telling them what the prize is and how much the call will cost them. It is not until you engage in the 190-telephone call that you get the information, so how do you know its value for money?

“Effectively, you are paying at least $13 for the privilege of being told what they are selling you. The so-called gift is a hook to sell you subscriptions to weekly ring-tones and other gimmicky services.

“This is a slick new twist on the old “you have won” marketing ploy but this time its aimed at young consumers who do not have the experience to see it for what it is.”

Consumer Protection is working closely with NSW Office of Fair Trading and other eastern states agencies on this issue.

“Although making unsolicited telemarketing calls is not illegal, there are certain aspects of this competition which is of interest to the NSW Department of Racing and Gaming,” Mr Walker said.