Press Release

OFTA's Response to the Industry Code to Promote Transparency in the Provision of Services by Content Service Providers

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 (CAHK), the Office of the Telecommunications Authority (OFTA) today (11 January 2010) 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 disputes complaints received in connection with chargeable mobile content services, OFTA wrote to mobile network operators (MNOs) on 4 November 2009 to explore what measures could be taken to improve the system. OFTA also issued a consumer alert on 20 November 2009 to advise consumers on necessary measures to avoid possible billing disputes and unnecessary financial loss due to the subscription and consumption of such services.

Thereafter a meeting was held between OFTA and the MNOs on 16 December 2009, MNOs agreed to work with OFTA to develop measures to supplement existing safeguards.

With adoption of the Code today, we will monitor implementation of the Code and assess its effectiveness. If problems persist, we will consider whether other 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 is an undertaking that the MNOs will not enter into contracts with CSPs to provide a delivering and billing service if these CSPs' contract terms with customers are not transparent and if these CSPs do not comply with the Code.

Office of the Telecommunications Authority
11 January 2010