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Chatline operators face tougher rules
Alfred Siew, Technology Correspondent
Fri, Jun 08, 2007
The Straits Times

THE heat is on operators of chatlines and other 'premium rate' mobile services - following a spate of complaints from mobile-phone users.

As a result, the Infocomm Development Authority (IDA) has proposed new rules that will prevent such operators from collecting fees for a service that is under dispute.

The IDA's proposed code of practice, released last month to gather industry feedback, also makes it compulsory for service providers to send reminders so users can keep track of charges.

The code targets a wide range of service providers, including those offering chatline, ringtone, news and other services. Offenders can be fined a maximum of $1 million.

The IDA said it has received complaints in the past two years. Last year, it warned two operators and fined four others. In 2005, it fined one operator.

The regulator said many mobile users feel misled by service providers' advertisements. They are also unhappy these providers cannot be contacted easily over disputed charges.

Sometimes, users are charged for unsolicited messages. During Chinese New Year last year, one provider charged 300,000 mobile users for SMS greeting messages they did not ask for.

It was the most serious case so far, and the company responsible, mTouche, was later fined $150,000. It also had its licence suspended for six months.

If passed, the IDA code will make it mandatory for service providers to maintain a customer service hotline and keep records of complaints.

Specifically for chatline services, a user should be able to determine the maximum number of chargeable messages he receives. Currently, chatline services can send several chargeable messages a day once a user signs up.

Service providers contacted by The Straits Times, including mTouche, declined to comment ahead of the deadline tomorrow to submit feedback to the IDA.

Consumers welcomed the protection the code seeks to provide.

IT consultant Benjamin Lou, 32, is against the practice of some operators whose services are 'auto opt-in'.

Student Y. C. Tai, 21, whose sister had to pay $25 for five 'premium' SMS messages recently, said: 'Every time I call the telco to clarify the bill, they shift the blame to an external company... it's like being kicked around.

'The industry definitely needs to be cleaned up.'

siewtha@sph.com.sg

ADDITIONAL REPORTING BY LIM YEE HUNG

This article first appeared in ST on June 08, 2007

 

 
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