SMS Marketing Laws Australia

Although SMS marketing has proved very effective, businesses can get slapped with millions of dollars worth of fines for violating spam laws if they aren’t careful.

It can be a little unclear when implementing SMS strategies where to draw the line between effective marketing and spam. Spam refers to unwanted or unsolicited messages, for example promotional messages relating to a product that the owner of the handset has no prior experience with.

The current legislation regulating spam is the Spam Act 2003. This is enforced by the Australian Communications and Media Authority (ACMA). However, it is also the responsibility of individual businesses to make sure their own behaviour is complicit with the Act. The Act covers all forms of commercial electronic mail, including email, MMS, IM and, most importantly for us, SMS.

The Act sets out the following:

Registration and approval of Sender IDs – 

A Sender ID identifies who, or what organisation has sent a message – and your customers see it when they receive an SMS from you. As an Esendex customer, you can currently create and edit a Sender ID through our portal, API, email to SMS or via automation.

Australian Communications and Media Authority (ACMA) regulations now require you to register your Sender ID for approval, prior to sending messages within Australia. This allows numbers to be identified and traced and will help to prevent text messages that seek to defraud recipients by using Sender IDs based on:

• a well-known brand name that is not their own
• another company’s phone number or,
• a generic name (e.g. DELIVERY or UPDATE)

Sender IDs need to be registered with, and approved by the company you use to send text messages. That means you’ll need to register with the team here at Esendex.

Please visit our support page, where you’ll find an FAQ section and more information about the new regulations.

Consent from recipients –

Recipients may give express consent, or consent may be inferred from their conduct and ‘existing business or other relationships’. An example of inferred consent includes customers being contacted after purchasing an item that included an ongoing warranty. Inferred consent is also established when recipients are subscribers to magazines or other publications, members of frequent flyers clubs, registered users of online services and more.

Express consent is when the recipient specifically signs up to receive SMS messages.

Identification –

Messages must contain clear and accurate information about the person or organisation that authorised the sending of the message. A great way to ensure this is to include a Sender ID with the name of your company. Failing to do this, the message must begin the message with the business or company name.

Unsubscribe option –

All marketing or promotional messages must contain a functional ‘unsubscribe’ feature, that allows the recipient to opt out from receiving messages in the future.

In the event of a breach, the Act provides a range of enforcement options and the ACMA determines the appropriate action on a case-by-case basis. Formal warnings are used by the ACMA to indicate concerns about alleged incidents and allow for the business or individual to take compliance action to prevent any future contraventions.

There are also exemptions from the Act, either because the information being sent is not marketing related but informational or because of the nature of the organisation sending messages. Charities, religious and non-government organisations (like educational institutions), and government bodies in Australia are exempt from the Act as long as the content of the messages relate to the goods and services provided by the organisation.

Understanding Australian SMS Regulations

Australian SMS regulations are governed by the Spam Act 2003, a crucial piece of legislation designed to protect individuals from receiving unwanted commercial electronic messages. This Act regulates the sending of commercial electronic messages, including SMS and MMS, ensuring that businesses obtain consent from recipients before dispatching any marketing messages. The Australian Communications and Media Authority (ACMA) plays a pivotal role in enforcing the Spam Act, ensuring that businesses adhere to its provisions and maintain compliance. By understanding and following these regulations, businesses can effectively engage in SMS marketing while respecting the privacy and preferences of their audience.

Overview of the Spam Act 2003

The Spam Act 2003 is a federal law that sets the framework for regulating commercial electronic messages, including SMS and MMS. This Act strictly prohibits the sending of unsolicited commercial electronic messages, requiring businesses to secure consent from recipients before sending any marketing communications. Additionally, the Act mandates that businesses clearly identify themselves in all electronic messages and provide a straightforward method for recipients to unsubscribe from future messages. By adhering to these guidelines, businesses can ensure their SMS marketing campaigns are compliant and respectful of recipients’ preferences.

Key Requirements for Marketing Messages

To comply with the Spam Act 2003, businesses engaged in SMS marketing must adhere to several key requirements:

• Obtain Express Consent: Before sending any marketing messages, businesses must secure express consent from recipients. This means recipients have explicitly agreed to receive such messages.
• Clear Identification: Every electronic message must clearly identify the sender, ensuring recipients know who is contacting them.
• Unsubscribe Option: Businesses must provide an easy and accessible way for recipients to unsubscribe from future messages.
• Avoid Misleading Messages: All electronic messages must be truthful and not misleading or deceptive in any way.
• Privacy Compliance: Businesses must comply with the Australian Privacy Principles (APPs) when collecting and handling personal information.

By following these requirements, businesses can conduct SMS marketing campaigns that are both effective and compliant with the Spam Act 2003.

Providing an Easy Way to Unsubscribe

The Spam Act 2003 mandates that businesses provide a simple and cost-free way for recipients to unsubscribe from future electronic messages. This can be achieved by including an unsubscribe link or keyword within the message, or by offering a clear and straightforward process for opting out. It’s crucial that businesses action unsubscribe requests quickly. By making the unsubscribe process easy and accessible, businesses can maintain trust and respect with their audience, while adhering to legal requirements.

Penalties for Non-Compliance

Non-compliance with the Spam Act 2003 can result in significant penalties for businesses. The Australian Communications and Media Authority (ACMA) has the authority to impose fines for serious breaches of the Act. Additionally, businesses may be required to implement compliance programs or undergo audits to rectify their practices. Beyond financial penalties, non-compliance can severely damage a business’s reputation and erode customer trust. Therefore, it is crucial for businesses to understand and adhere to the regulations set forth in the Spam Act 2003 to avoid these repercussions.

Keep this information in mind, but for further information visit www.acma.gov.au or call us today on 1300 764 946.