In a bid to safeguard consumer interests in the wake of growing complaints from users, the Telecom Regulatory Authority of India (TRAI) has issued a directive to service providers, asking them to provide value-added services (VAS) only after obtaining explicit consent from consumers.

According to TRAI, several users have complained that VAS is being provided, especially to prepaid users, without taking their explicit consent. Instances have been cited when VAS has been renewed to a prepaid user even when the available balance in the consumer’s account has been insufficient for the renewal. This has resulted in a negative balance for some consumers.

To prevent the accidental activation of services like call ringback tones and hello tunes, TRAI has directed operators to convey in writing or through SMS or fax or e-mail, all the details of the VAS so that accidental activation through the method of pressing a key to express consent is avoided.

According to TRAI, “The system of pressing a button to activate VAS is not a sound method as children at home could also unintentionally press a particular key and activate a service. Also, accidental activation of VAS through an outbound dialler (OBD) call can also take place without the customer understanding the implications of an offer.” Besides, there is also the possibility that a customer may not have listened to the announcements carefully or not understood the offer and pressed a particular key unknowingly, thereby activating the service.

Therefore, getting explicit consent from the user before activating a VAS is imperative. Also, the service provider should charge the consumer only if the confirmation is received from him for VAS, and should discontinue VAS if no confirmation is received from the consumer.

In a statement, TRAI has asked all access service providers, including state operators Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited, to comply with the directives by mid-August 2011.

The directives to all service providers are as follows:

• In all the cases where a VAS is activated through an OBD call or a service provider-initiated call or during pre-call, ringback announcements (both voice and automated), and where a consumer dials a specified telephone number or short code or a telephone number providing the interactive session for subscribing to a VAS, the service provider will have to obtain confirmation from the consumer through a consumer-originated SMS or email or fax, or in writing within 24 hours of activation of the VAS and charge the consumer only if the confirmation is received from him for the same. The service provider should discontinue such VAS if no confirmation is received from the consumer.

• Every service provider will, at least three days before the due date of renewal of a subscribed VAS, inform the consumer of the due date for renewal of such a service, the charges for renewal, and the toll-free telephone number for unsubscribing the VAS through SMS.

• If there is insufficient balance in the consumer’s account at the time of renewal of subscription to a VAS, the service provider will send a request through SMSto 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 a request, the consumer indicates his explicit consent by conveying “Yes”, the VAS will be renewed and the consumer will be informed by the service provider through SMS that the charges for the renewal of VAS subscription will be deducted from the subsequent recharge.

Meanwhile, to protect user interest, TRAI has issued two draft regulations – the Telecom Consumers Protection Regulations, 2011 and the Telecom Consumers Complaint Redressal Regulations, 2011. 

The draft regulation on consumer protection is focused on providing better information to consumers regarding the talktime on the recharge of top-up vouchers, usage details at the end of each call/SMS, transparency in tariffs and provision of information related to premium rate services, among others. On the other hand, the draft regulation on complaint redressal is focused on providing a single -window system for effective redressal of consumer grievances. TRAI proposes to set up a three-member appellate authority that will include members from the service provider groups, consumer groups and judicial/government officers so as to ensure a fair mechanism for the redressal of consumer grievances