Australia's mobile phone networks have agreed to a code of conduct that will govern their future advertising claims. They have signed up to a court enforceable undertaking that has been given to the Australian Competition and Consumer Commission (ACCC) that they will review and improve their advertising practices.

"The broader telecommunications industry has for some time walked a fine line between compliant and non compliant advertising. The ACCC welcomes the co-operation of the three major carriers in clearly articulating what is fair to consumers and what is not, and their commitment to the basic principle of truth in advertising," ACCC Chairman Graeme Samuel said today.

The ACCC identified the 12 most prevalent types of potentially misleading conduct made in telecommunications, and the three industry leaders have undertaken that their advertising will not make these claims in circumstances where they are likely to be misleading to consumers.

In announcing the acceptance of the undertaking, Mr Samuel said: "Having the three major carriers on board is a critical step, and the management of the major telecommunications companies should be applauded for taking a stand. In honouring this undertaking they will achieve significant sectoral reform in a market which is now relevant to the vast majority of Australians.

"The ACCC recognises there is more to do. The ACCC will now contact the next tier of operators who will be encouraged to adhere to the principles set out in the undertaking. When taken together with the three major carriers, this would then account for almost 90 per cent of the market for telecommunications goods and services in Australia."

"The ultimate test will come as future behaviour in the market is monitored and I remind all companies involved in telecommunications that the ACCC will continue its vigilant monitoring of their advertising practices, and will without hesitation take legal action to deal with any further flouting of the law," Mr Samuel said.