SMS Regulations and Restrictions in Australia

SMS marketing has been a powerful tool by which marketers reach and communicate with customers directly in Australia effectively. However, SMS marketing is bound by the book in terms of laws on issues related to consumer rights protection and consent to achieve privacy. There are legal constraints related to making use of laws governing SMS marketing to benefit in the utilization of text messaging but adhering strictly to the books. This article aims to discuss certain regulations and guidelines that businesses observe when using an SMS in Australia.

Understanding the SMS Marketing Laws in Australia

In Australia, the Australian Communications and Media Authority, or ACMA, primarily governs SMS marketing. It views laws that help protect consumers against unwanted messages seriously. In Australia, the Spam Act 2003 and the Spam Regulations 2021 seek to control the sending of SMS marketing messages in addition to other commercial electronic messages such as emails and instant messages.

The Spam Act 2003 is the primary legislation that covers all aspects of the issue of sending unsolicited commercial electronic messages including SMS, email, and instant messages. This legislation was introduced in response to the increasing level of spam which involves unsolicited messages for advertisement or sale of goods or services.

Key Provisions of the Spam Act

1. Consent: According to the Spam Act, businesses must request explicit prior consent of recipients before sending any marketing messages. In other words, those businesses are not permitted to send SMS marketing messages to any other person unless he or she has given prior approval. Different methods including but not limited to website form sign up, newsletter request or providing a phone number during a transaction have been mentioned as ways of giving consent.
2. Identification: Every single marketing message via SMS must bear the name of the originator, including contact details. That way, whoever receives it knows who they are contacting. This helps receive identification for further action in case the recipient feels that further information is required.
3. Unsubscribe Option: Any SMS marketing message must have a clear and simple unsubscribe method in place so that the recipient can opt-out from further communications. The common practice is to include a reply keyword, such as "STOP," which the recipient can send to opt-out. Opting out should be instant and free of charge except for standard message rates.
4. Be Transparent About Your Intentions: Clearly indicate your intentions to your recipients about the type of message they will expect to receive, to raise trust and limit complaints.
5. Alphanumeric sender IDs: When sending SMS to recipients in Australia, messages are sent from alphanumeric sender IDs. These numbers are free with any plan.

Alphanumeric numbers are common and recommended practice in Australia. Alphanumeric numbers cannot:

• Send MMS messages
• Receive either SMS or MMS messages

Because of this, subscribers cannot opt in or out using a keyword (e.g., JOIN or STOP).

You should avoid including any forbidden content in your SMS. If you do, carriers will most likely censor your message, and it will not be sent to the desired recipient. They may also restrict future communications from your company, regardless of concern.

Other rules to fight SMS scams

It's a new rule effective July 2022 wherein the Australian Communications and Media Authority registered new rules that require telcos to identify, trace, and block SMS scams. SMS software provider would have to validate that you, as the sender, have the authority to use an alphanumeric sender ID. Alphanumeric Sender ID utilizes alphabetical and numerical characters and not just numbers. For example, include business names or brand name/organisations (i.e. Vision6).

It is worth noting that some countries do not support alphanumeric sender IDs, for instance New Zealand and the United States of America. You will find your SMS not to be delivered if you send contacts who reside in these countries and use an alphanumeric sender ID.

If you would like to see how to set up your Sender ID in accordance with the new rules laid out by ACMA check out our power session recording.

Penalties for Non-Compliance

Failure to adhere to the provisions of the Spam Act would mean business organizations faced grave penalties. The ACMA may impose fines amounting to as much as $2.5 million to companies and $500,000 to individuals. Such a stern reminder to businesses to ensure they are fully compliant with SMS marketing regulations.

The Importance of Consent in SMS Marketing

Australian businesses should ask for explicit consent and lawfully use SMS marketing to avoid potential legal problems and ensure a good reputation in the market. This consent can be gained through a number of different mediums and must be clear what marketing messages and what type of information they will be receiving. They must also keep evidence of client consent in case of a dispute or ACMA investigation.

For example, if you are applying for a background check such as a Victorian police check request, you will have consented to receiving emails and SMS notifications as part of the application process. These are generally found in the terms and conditions for most websites.

Opt-In and Opt-Out Mechanisms

The Spam Act requires organizations to ensure opt-in and opt-out features for SMS marketing messages are user-friendly. In an opt-in scenario, a user has to undertake a specific action, for example, completing a form or accepting terms of use. An opt-out scenario is simple as the recipient will be able to opt out at once and without cost to stop receiving further messages. Non-compliance may lead to complaints from ACMA with potential penalties. Customers may complain and cause business-related legal action for telecom businesses that own other companies.

Key Restrictions on SMS Marketing in Australia

Besides seeking consent and giving the option to opt-out, there are other key restrictions businesses must adhere to in sending SMS marketing messages in Australia:

1. No Unsolicited Messages: Businesses cannot send unsolicited SMS messages. These are messages, which individuals without explicit consent have not wished to receive and from sending messages to recipients who have previously opted out of SMS marketing communications.
2. Time Restrictions: SMS marketing messages should only be communicated during limited hours. In general, businesses should avoid sending marketing messages after 9:00 PM and before 8:00 AM on weekdays since sending them during those hours might pester the recipient and raise possibilities of complaint or regulatory action.
3. Data Protection and Privacy Act: Business has to be careful when handling other recipients' data. Business under the Privacy Act 1988 is to protect personal information and not share this without permission from the recipient. The business should, besides, provide the customer with a privacy policy stating how customer data was collected, used, and protected.
4. Complies with Do Not Call Register: While the Do Not Call Register is mainly applied to the telemarketing calls, businesses should also monitor if people are on this list before SMS marketing message distribution. Penalties may be incurred should they send marketing messages to those on this list.
5. Keep Yourself Informed: Since laws regarding SMS marketing vary in different countries, it is essential for businesses that utilize such marketing to update themselves with any new legal adjustments.

The Role of SMS Marketing Platforms in Compliance

SMS marketing tools are vital for complying with Australian policies and regulations. They regulate the opt-ins, opt-outs, and unsubscribe requests while also creating backup templates for legal disclaimers. They also assist in managing consent records meant for audits or investigations. To remain lawful, SMS platforms for businesses of all niches and sizes are important.

Conclusion:

In Australia, SMS marketing is quite effective as a means of reaching the end user, although there are some restrictions and regulations that should be observed for effective consumer protection. By obtaining explicit consent, giving a clear opt-out option, respecting time limits, and keeping data private, businesses can efficiently use SMS marketing without violating any rules. By applying the right strategies and sticking to compliance, SMS marketing will be an effective and trusted channel of communication in Australia

FAQ’s

What is express permission?

Someone who explicitly opts to accept direct marketing has signed up to receive messages. This may be someone signing up for an email or SMS subscriber list on your website or filling out a card in-store.

What is inferred permission?

When someone becomes a customer of yours, they implicitly agree to receive messages from you. It is considered that since consumers have dealt with your brand on a transactional level, they are eager to learn more about your products or services.

To lawfully apply SMS or other direct marketing tactics, you must first have either written or verbal approval.

How can I add an unsubscribe option for SMS marketing campaigns?

Using a third-party reliable SMS or email marketing software will allow you to deliver a message with an easy opt-out option. SMS marketing laws in Australia require an opt-out for each email and SMS marketing communications.

Anyone who cancels or opts out of receiving SMS or email messages from you must be withdrawn from all future campaigns. You have five days to delete them from your lists completely.

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