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In response to the adoption by the mobile industry of the code on chargeable mobile content services as announced by the Communications Association of Hong Kong, the Office of the Telecommunications Authority (OFTA) today (January 11) issued the following statement:
"We welcome the efforts of the mobile telecommunications operators in adopting the code on chargeable mobile content services provided by third party Content Service Providers (CSPs) under contract to customers and delivered through short messaging services (SMS) or multimedia messaging services (MMS). Mobile operators became involved to ensure that their customers were sufficiently protected. This code stipulates a set of requirements for compliance by the industry to ensure consumers are better informed of the charging information and arrangements for mobile content services. This positive step taken by the mobile operators to safeguard consumer interest should help address the recent public concern about billing disputes in connection with chargeable mobile content services.
In the light of a number of billing dispute complaints received in connection with chargeable mobile content services, OFTA wrote to mobile network operators (MNOs) on November 4, 2009, to explore what measures could be taken to improve the system. OFTA also issued a consumer alert (www.ofta.gov.hk/en/c_alert/c_alert_20091120.pdf) on November 20, 2009, to advise consumers of measures to avoid possible billing disputes and financial loss due to subscription to and consumption of such services.
Thereafter a meeting was held between OFTA and the MNOs on December 16, 2009. The MNOs agreed to work with OFTA to develop measures to supplement existing safeguards.
With the adoption of the code today, we will monitor its implementation and assess its effectiveness. If problems persist, we will consider whether more stringent measures would be required."
Background:
There has been public concern about billing disputes between some CSPs and mobile users in connection with chargeable mobile content services. After analysing the complaints received, OFTA has found that in some cases the CSPs have either failed to provide in their messages or websites clear charging information or indicate clearly to customers how they may unsubscribe from the services.
At the core of the code (www.cahk.hk/News/296/Code_MCS.pdf) is an undertaking that the MNOs will not enter into contracts with CSPs to provide a delivery and billing service if these CSPs' contract terms with customers are not transparent and if these CSPs do not comply with the code.
Ends/Monday, January 11, 2010
Issued at HKT 16:10
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