IDA bans anti-consumer telecoms practices

Staff writer
23 Dec 2010

Singapore’s telecoms service providers will be prohibited from threatening to cross-terminate services or automatically charging users after a free trial ends under new competition rules from the Infocomm Development Authority (IDA).

The IDA said on Wednesday it had revised its Telecom Competition Code to safeguard consumers’ interests in several areas.

One new clause added to the code prohibits telecom licensees from “cross-terminating” a consumer’s service agreement if the consumer breaches the terms and conditions of another service agreement from an affiliated operator or if the consumer is subscribed to a basic telephone service.

“This would mean that telecom operators cannot exert undue pressure on consumers to make payment of disputed charges through threatening to terminate services offered by an affiliated telecom operator, unless the services are offered under the same service agreement,” the IDA said in a statement.

Another provision bans licensees from automatically charging consumers after a free service trial ends without express agreement from the consumer.

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