TRAI puts a check on predatory value-added services

Bringing a major relief to the consumers, Telecom Regulatory Authority of India (TRAI) Monday issued directives to telecom operators to charge customers only if a confirmation is received from them for any value added service.
"The service provider shall obtain confirmation from the consumer through SMS or e-mail or fax or in writing within 24 hours of activation of the VAS," TRAI said in a statement. "The consumer should be charged only if the confirmation is received from him for such value added service and shall discontinue if no confirmation is received," it added.
The regulator also said that the companies will have to keep the consumers informed three days in advance about the renewal of the services, through SMS also informing to get the cell phone recharged if there is insufficient amount. In another note, the regulator emphasised that no operator would charge calls made by a customer to its complaint centre through the customer care number.
"No call charge or short message service charge or USSD (Unstructured Supplementary Service Data) charge shall be levied upon, or payable by its consumers, for calls made or received, or short message service sent or received, or USSD calls received, to or from the complaint centre at its consumer care number."
All the service providers have also been instructed to establish a complaint centre for solving complaints of its consumers within 60 days of the commencement of TRAI's regulation.
TRAI also emphasised that operators regularly display the contact details of the complaint centres, including consumer care number in each licensed area, through advertisements in newspapers. TRAI had floated a consultation paper last year seeking comments from the stakeholders on measures for protecting consumers interest and redressal of consumer grievances. IANS

 

Press release issued on TRAI website

TRAI issues Direction to Service Providers on provision of Value Added Services (VAS)
New Delhi, 4th July, 2011: With a view to protecting the interest of
consumers, the Telecom Regulatory Authority of India (TRAI) today issued a
Direction on the procedure for providing Value Added Services (VAS).
2. The issue of the procedure for activating value added services has been
receiving the attention of the Authority from time to time. While the Authority
is conscious of the salience of value added services, it has always been keen
that their growth should be without adversely affecting the interest of
consumers. Accordingly, emphasis has been laid from time to time to ensure
that value added services are provided only after obtaining the explicit consent
of the consumers. Various steps have been taken by the Authority in this
regard from time to time.
3. Despite various initiatives, complaints regarding provision of value added
services are being received by the Authority. This issue was deliberated in
detail in the consultation paper on “Review of measures to protect the Interest
of Consumers in telecom Sector” issued on 2.8.2010. Most of the consumers
have underlined the need for further strengthening of the provision to seek
explicit consent of the consumers as they are of the view that value added
services are still being provided to consumers (especially pre-paid consumers)
without taking their explicit consent. Incidences have also been brought to
the notice of the Authority where value added services have been renewed to
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pre-paid consumers even in cases where available balance in consumer’s
account was insufficient for the renewal of VAS resulting in negative balance.
4. Therefore, the Authority in partial modification of existing Directions has
directed all Service providers as follows:
(i) in all cases where the value added services are activated through Out
Bound Dialer or service provider initiated call or during pre-call ringback
announcements (both voice as well as automated) and where a
consumer dials a specified telephone number or short code or a
telephone number providing interactive session for subscribing to a
Value Added Service, the service provider shall obtain confirmation
from the consumer through consumer originated SMS or e-mail or
FAX or in writing within twenty four hours of activation of the value
added service and charge the consumer only if the confirmation is
received from him for such value added service and shall discontinue
such value added service if no confirmation is received from the
consumer;
(ii) every service provider shall, at least three days before the due date of
renewal of a subscribed value added service, inform the consumer
through SMS, the due date for renewal of such service, the charges
for renewal and toll free telephone number for unsubscribing the
value added service; and
(iii) if there is insufficient balance in the account of a consumer at the
time of renewal of subscription to a value added service, the service
provider shall send a request, through SMS, to the consumer to
indicate his consent for continuing such service by sending an SMS
as “Yes” or “No” to a toll free number and if, in response to such
request, the consumer indicates his explicit consent by conveying
“Yes”, such value added service shall be renewed and such consumer
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shall be informed by the service provider through SMS that the
charges for renewal of subscription of value added service shall be
deducted from subsequent recharge.
5. The Direction has already been placed on TRAI’s website www.trai.gov.in.

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