The Consumer Council is now questioning the lack of action by the Commerce Commission in dealing with businesses engaging in text promotions as they believe that all those promoting text messaging competitions are charging a different and higher rate than the approved 20c for normal texting.

The Council said these companies are engaging in an illegal activity after breaching Section 34 (1) of the Commerce Act 1998 and the Commission is doing nothing about it.

Section 34 (1) of the Commerce Act 1998 states that a person must not supply any controlled goods or services unless a price for those goods or services has been authorised by the Commission and the goods and services are supplied in accordance with the authorisation.

Consumer Council Media Officer, Shalvin Prasad said this section does not mention the permitting of companies to conduct text promotions or an approved rate to be charged and he adds the Commission has basically been ineffective in its duties.

The fine for breaching Section 34 (1) of the Commerce Act is $50,000.

The Commerce Commission is expected to comment later today.