United Nations Public Service Awards Case Studies

Unwanted communications are a global problem. ACMA, through its Converging Services Branch has made significant progress in reducing unwanted communications received in Australia through its execution and enforcement of the Spam Act 2003 (the Spam Act) and the Do Not Call Register Act 2006 (DNCR Act), as well as introducing internet security measures such as the Australian Internet Security Initiative (AISI).
Spam
The explanatory memorandum (EM) to the Spam Act states:
‘The Government is concerned that the exponential growth of what is commonly referred to as spam is threatening the effectiveness and efficiency of electronic communication…It is an international problem affecting the efficient operation of Internet telecommunications networks and imposing costs on end-users.’
Further, the EM states:
‘Unsolicited electronic messages or “spam” are reaching plague proportions and growing exponentially. It is causing immense frustration and reduced productivity for users, businesses and government agencies. If left unchecked it will reach proportions which will threaten the viability of the internet as a reliable communications medium.’
The EM goes on to acknowledge significant effects of spam including:
• Negative effects on user confidence and network integrity;
• Privacy concerns;
• Illegal activity including prohibited content, illegal online gambling and unlawful trade practices;
• Deception; and
• Financial costs to business due to, among other things, loss of productivity.
At the time of the commencement of the Spam Act, Sophos statistics listed Australia in its top 10 spamming nations (Australia was placed 35th in 2007).
Unwanted telemarketing calls
The EM to the DNCR Act states:
‘The Government is concerned that the rate of unsolicited telemarketing calls has grown significantly in recent years. There have been rising community concerns about the inconvenience and intrusiveness of telemarketing on Australians, as well as concerns about the impact of telemarketing on an individual’s privacy. While telemarketing is a legitimate method by which businesses can market their services or seek donations, the Bill will enable individuals to express a preference not to be called by telemarketers.’
The EM further stated that:
‘Two distinct, but interrelated issues have been identified in relation to telemarketing activities in Australia. First, there is increasing dissatisfaction within the community about telemarketing activities (including privacy concerns). Second, the fragmentation and inconsistency in current rules governing the telemarketing industry has lead to the industry and consumer calls for a more unified policy approach to telemarketing issues.’
Anecdotal evidence collected at the time of commencement of the Do Not Call Register indicated that Australian households were receiving upwards of two telemarketing calls per week prior to the commencement of the DNCR Act.

What is the initiative about? (the solution)
ACMA’s Converging Services Branch has, through its work in reducing unwanted communications in Australia, noted a number of benefits locally and globally. Benefits locally A key benefit of ACMA’s efforts in enforcing the Spam and Do Not Call Register Acts has been a significant reduction in unwanted communications received by Australians. To this end, ACMA has issued in relation to the Spam Act: • 15 Infringement Notices (involving monetary penalties); and • 22 Formal Warnings; and • Accepted 7 enforceable undertakings. In addition, $AUD5.5 million in penalties were awarded in 2006 in the matter of ACMA v Clarity1/Mansfield in relation to extensive breaches of the Spam Act. In relation to the DNCR Act, ACMA has issued: •  5 Infringement Notices (involving monetary penalties); •  2 Formal Warnings; and •  Accepted 5 Enforceable Undertakings The publicity from these actions has resulted in increased awareness amongst the community about dealing with unwanted communications and encouraging compliance amongst industry. Benefits internationally Unwanted communications, particularly in the area of spam, are an international problem. ACMA has been a pioneer in establishing international networks both in the areas of spam and telemarketing enforcement. These networks have allowed not only for the sharing of information in the context of investigations, but also sharing expertise and experience in enforcement issues relating to unwanted communications more generally. ACMA is a founding and active member of the London Action Plan developed in 2004 to bring together members of the international spam community in the fight against spam. ACMA is also a founding member and current Chair and Secretariat of the Seoul-Melbourne MOU Group, an Asian-Pacific centred group working together to fight spam. ACMA has international agreements for the exchange of information with a number of countries including the USA and NZ, and has also exchanged information with the FTC under the US SafeWeb Act 2006. ACMA has also begun establishing international connections with other telemarketing regulators, including the FTC and TRAI (Indian regulator). ACMA liaised with representatives of telemarketing regulators in Canada, Korea, and Hong Kong about the logistics of setting up a Do Not Call Register. ACMA’s work in the area of unwanted communications is highly regarded. To this end, ACMA is frequently invited to participate in conferences internationally. In 2008, ACMA gave presentations in Saudi Arabia and to the Pacific Islands Forum about spam compliance. In addition, ACMA routinely provides information to its international counterparts regarding spam emails from data collected in ACMA’s SpamMatters database. Most recently ACMA provided assistance to the FTC in relation to its investigations of a New Zealand citizen, residing in Australia, for spam offences.

Who proposed the solution, who implemented it and who were the stakeholders?
Proposer The Spam Act and the DNCR Act were passed by the Australian parliament in 2003 and 2006 respectively. In relation to the Spam Act, the Australian government has a five part strategy for combating spam which includes: 1. Strong enforcement of the Spam Act 2003 2. Education and awareness activities 3. Industry measures 4. Technological initiatives and solutions 5. International cooperation Implementation The Spam Act provides ACMA with three key responsibilities. These are: • To investigate complaints about alleged contraventions of the Spam Act; • To monitor compliance with the Spam Act; and • To register industry codes in relation to the sending of commercial electronic messages. The DNCR Act provides ACMA with four key responsibilities. These are: • To establish a Do Not Call Register; • To develop an industry standard setting out minimum contact standards for telemarketing; • To investigate complaints about alleged contraventions of the DNCR Act and the industry standard; and • To register industry codes in relation to the making of telemarketing calls. To this end, ACMA was, and continues to be, responsible for the implementation of policy in relation to the enforcement of the Spam and DNCR Acts. Stakeholders Unwanted communications are a global issue. Key stakeholders identified in relation to unwanted communications include: • Marketers (telemarketing and electronic marketing); • Industry, in general; • International counterparts; and • Telecommunications service providers (telephone and internet)

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
ACMA’s Converging Services Branch has carriage of ACMA’s responsibilities under the Spam and Do Not Call Register Acts. These responsibilities include: • Management of the DNCR contract; • Management of the Australian Internet Security Initiative; • Enforcement of the DNCR Act and industry standard; and • Enforcement of the Spam Act. The ultimate goal of the Converging Services Branch is to reduce unwanted communications for Australians and Australian originated communications affecting the rest of the world. Education A key part of ACMA’s approach enforcement is education. ACMA makes available both in hard form and via the internet, a range of publications for both industry and the public. From an industry perspective, ACMA publications provide some clarity around ACMA’s view of the sometimes complicated regulatory responsibilities imposed on industry under the regimes administered by ACMA. For the public, ACMA publications provide advice on what they should and should not expect from industry. In relation to the Do Not Call Register, ACMA intends to release some ‘Best Practice Guidelines’ next year which draw on industry liaison, research and practical investigations experience. ACMA also considers targeted publicity in the form of media releases in relation to actions taken for possible contraventions of the Spam and DNCR Acts to be an important part of achieving compliance through education. In general, media releases inform both the public and industry about the work that ACMA is undertaking in an accessible and straightforward way. Complaints management Both the Spam and DNCR Acts provide for ACMA to have a complaint handling role. A key part of ACMA’s responsibilities under the DNCR Act was to set up the Do Not Call Register. ACMA awarded the contract for the register to a private provider. A key component of the contract is that the register operator, deals with complaints in the first instance. ACMA then takes an office of last resort role for dealing with complaints about contraventions of the DNCR Act and the industry standard. Under the Spam Act, ACMA is the complaint handling agency for all complaints by Australian citizens about spam. To assist in this responsibility, ACMA launched SpamMatters. Further details of SpamMATTERS are provided below. Enforcement tools ACMA has a range of enforcement tools available to it under the Spam and Do Not Call Register Acts. ACMA’s approach to enforcement includes a range of enforcement options, varying from a formal warning in minor cases through to Federal Court Action in serious matters. Technical solutions In 2005, ACMA began encouraging consumer reporting of spam and enlisted industry support in the implementation of spam-fighting solutions. ACMA has received over 44 million reports of spam using its SpamMATTERS reporting tool. SpamMatters is an automated system which allows a user to delete and report spam to ACMA in a single action. SpamMatters collects forensic evidence which can identify the source of unsolicited emails, and can be used in ACMA investigations. The development of the Australian Internet Security Initiative has enlisted 56 Australian internet service providers to identify compromised (‘zombie’) computers being used to distribute spam.

b. What were the key development and implementation steps and the chronology? No more than 500 words
Milestones for ACMA’s work in reducing unwanted communications – Enforcing the Spam & DNCR Acts 20 October 2003 - Australia and Korea sign a memorandum of understanding designed to promote the regulation of spam 2 December 2003 - Spam Act 2003 passed in parliament and ACMA's predecessor, ACA appointed "spam watchdog" 4 July 2004 - Australia, the US and UK sign memorandum of understanding to fight spam 22 July 2004 - Evidence of several major Australian-based spammers closing down after ACA warnings about spam 1 December 2004 - ACA joins forces with ISPs in a world-first trial of a spam reporting system (SpamMATTERS) 22 February 2005 - Australia signs the London Action Plan on spam enforcement cooperation by 21 countries 5 April 2005 - First infringement notice issued to car sales company for sending unsolicited commercial SMS messages 17 April 2005 - Australia signs the Seoul-Melbourne Anti-Spam Agreement to facilitate Asia-Pacific cooperation in fighting spam 30 May 2006 - ACMA launches the SpamMATTERS reporting button June/July 2006 - The Australian Internet Security Initiative, designed to enlist the help of ISPs to combat 'zombie' computers, commences 11 August 2006 - Work commences on the Do Not Call Register and the Industry Standard 5 October 2006 - Do Not Call Register tender is released 27 October 2006 - First prosecution in Federal Court under the Spam Act, with penalties of $4.5 million against Clarity1 Pty Ltd 1 February 2007 - ACMA awards contract of $12.1 million to set up the Do Not Call Register 3 May 2007 - Do Not Call Register is launched with 200,000 telephone numbers registered in the first 24 hours. 25 May 2007 - Telemarketer access to the Do Not Call Register opens 31 May 2007 - Do Not Call Register Act 2006 and the National Industry Standard for Telemarketing and Research Calls officially commences. 23 July 2007 - ACMA penalises 'missed call' marketer $149,600 under the Spam Act 22 August 2007 - ACMA begins first investigation into alleged contraventions of the Do Not Call Register Act 30 May 2008 - First anniversary of the Do Not Call Register with registrations at 2.3 million 22 October 2008 - Major Do Not Call investigation resolved with $147,400 penalty paid

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
In achieving its objective of reducing unwanted communications in Australia, ACMA has encountered obstacles in relation to: global issues, public awareness, industry awareness, resourcing and strategic enforcement. Global issues Both an obstacle and an opportunity in reducing unwanted communications for Australians has been the global nature of these communications. To this end, ACMA has identified that it needs to be part of a global solution and has played a significant role in developing international partnerships to achieve this goal. Public awareness Achieving public awareness of the Spam and Do Not Call Register regimes has also been challenging. Significant resources have been dedicated to producing consumer information about dealing with unwanted communications. To this end, awareness of the Do Not Call Register is high with 2.65 million registrants at time of writing. In relation to spam, ACMA’s SpamMatter’s database has received 44 million reports of spam since its inception in 2005. In the area of spam, a current challenge has been to inform the community that short messages received on their mobile communication devices (SMS) are also covered by the Spam Act. ACMA has released a number of media releases in recent times to inform the community of this, and to encourage consumers to complain in situations where they consider they may have received spam. Industry awareness A key obstacle has also been ensuring industry awareness of laws pertaining to unwanted communications. ACMA has, and continues to, conduct targeted campaigns with industry groups who are identified through complaints (for example, real estate agents, nightclubs, second-hand car dealers) in order to ensure compliance and, ultimately, reduce unwanted communications. Resourcing and strategic enforcement Increasing public awareness about the Spam and Do Not Call Register Acts can be challenging because of resource constraints. As a practicality, ACMA is strategic in its approach to enforcement ensuring that enforcement tools are commensurate with the extent of a contravention.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
ACMA’s Converging Services Branch is made up of four streams: • The Australian Internet Security Initiative; • Management of the Do Not Call Register Contract and related policy matters; • Investigations of commercial electronic messages; and • Investigations of telemarketing calls made to numbers on the Do Not Call Register The Converging Services Branch has an annual budget of less than $AUD 7 million. The Australian Government budgeted $AUD 33 million over four years for the implementation and running of the Do Not Call register. In order to achieve compliance with the Spam and Do Not Call Register Acts, ACMA has two investigations teams – one dedicated to each activity who handle complaints and investigate possible contraventions of those acts. In addition, ACMA has responsibility for the Australian Internet Security Initiative. The Australian Government has provided more than $AUD 500,000 funding in relation to this initiative.

Is the initiative sustainable and transferable?
ACMA has developed policy, processes and systems that ensure the sustainability of reducing unwanted communications in Australia. For example, the SpamMATTERS reporting tool is software that complements a user’s email program by allowing the user to click a button to report spam to ACMA. It is free and available for download from ACMA’s website. ACMA receives hundreds of reports every day about spam. ACMA is constantly working on ways to improve the reporting of spam and utilise the vast amount of information about spam available. ACMA has actively encouraged the adoption and development of similar spam reporting software internationally. ACMA’s work in reducing unwanted communications in the area of spam is also held in high regard internationally. ACMA has provided training to spam investigators from a number of countries including Tonga and New Zealand. Australia’s spam regime is an arrangement whereby consumers are protected unless they choose to opt-in to receive commercial electronic messages. A number of countries are also adopting anti-spam legislation. The Australian Internet Security Initiative (AISI) collects data on computers that are operating as zombies, analyses this data, and provides daily reports to participating Australian Internet Service Providers (ISPs) on the zombie computers operating on their networks. The ISPs then inform their customers that their computer is compromised and provide advice on how they can fix it. ACMA also reports this information to signatories of the Seoul – Melbourne Memorandum of Understanding for regulatory action by the relevant country. The Do Not Call Register is a computerised database of telephone numbers and has been designed as a ‘turnkey’ solution – everything necessary to run the register has been supplied for implementation elsewhere. The register’s administration and operation can accommodate legislative changes and new communication technologies. This includes expanding the register to include more telephone numbers, or developing functionality for telemarketers to seamlessly build in telephone number checking into day to day operations. To date, ACMA has built the register so telephone numbers can be added and removed easily. Capacity is also available to remind registrants of registration expiry. The register’s dedicated website provides easy to use registration and, for telemarketers, access to the register to check telephone numbers. The website and the register’s database capacity are substantial, as evidenced by the 200,000 telephone numbers registered in the first 24 hours of its launch.

What are the impact of your initiative and the lessons learned?
At the time of the commencement of the Spam Act, Sophos statistics listed Australia in its top 10 spamming nations. By 2007, Australia’s ranking was 35th. This is attributed to ACMA’s sustained efforts to promote and encourage compliance with the Spam Act. At the same time, enforcement of the Spam Act has helped improve the integrity of electronic marketing as an industry and as a method of customer communication. Spam Act-compliant electronic messages allow senders to build trust with their customers and maintain a good reputation within their industry. SpamMatters has helped to keep the Australian community engaged with the fight against spam. ACMA has provided simple and easy solutions for registering numbers on the Do Not Call Register, resulting in 2.65 million telephone numbers registered. Access for telemarketers to check calling lists is provided online with the majority of calling lists checked in less than five seconds. The establishment of the register has increased consumer confidence in the use of telemarketing in Australia. By registering a telephone number on the Do Not Call Register, a consumer chooses to opt-out of most telemarketing calls. A registered number means callers have a clear indication of who will not be receptive to these calls. In addition, the register also encourages the raising of standards of customer service in the telemarketing industry for those consumers who are not registered. By far the most valuable lesson has been ACMA’s use of education to encourage compliance and raise awareness. This required sufficient planning and coordinating to accomplish tasks within limited time frames. As well as advertising initiatives, industry events, promotional material (print and web-based) and media coverage, engaging with stakeholders and working collaboratively to achieve outcomes has meant long-term relationships with industry have been developed. ACMA has also discovered great value in establishing and maintaining international connections and cooperating when investigating spam and telemarketing. As often commented, spam is a global problem with jurisdictional challenges. In addition, the outsourcing of the customer contact centres (telemarketing) to countries such as India and the Philippines, means cooperation with international regulators is essential for ACMA in reducing this type of unwanted communication. Working with other international regulators, particularly in the Asia-Pacific region, has placed ACMA at the forefront of tackling the problem of spam. These regional connections also assist ACMA to take enforcement action against international companies operating in Australia. Through the enforcement action taken by ACMA, consumers can now make informed choices about whether they wish to receive voice and electronic commercial communications.


Institution Name:		Australian Commmunications and Media Authority
Institution Type:		Government Agency
Contact Person:		Julia Cornwell McKean
Title:		Manager, Anti-Spam Team
Telephone/ Fax:		+61 3 9963 6908
Institution's / Project's Website:
E-mail:		julia.cornwellmckean@acma.gov.au
Address:		P.O. Box 13112, Law Courts
Postal Code:		8010
City:		Melbourne
State/Province:		VIC
Country:		Australia

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information