The Infocomm Media Improvement Authority (IMDA) has referred to as on telcos to be extra versatile when prospects wish to terminate service contracts which have expired.
Its transfer comes after readers earlier wrote in to The Straits Instances Discussion board web page complaining about M1’s “unfair” enterprise practices on this respect.
M1 had required prospects to present discover of termination precisely seven days earlier than their broadband service contracts ended, failing which, the contract can be routinely renewed.
The IMDA famous that the majority telcos provide their prospects the choice to terminate their service plans when the minimal contract time period expires.
Most telcos additionally notify prospects of the contract end-date prematurely, and don’t specify a date the discover have to be served by.
“Now we have requested telcos that don’t already accomplish that, resembling M1, to supply comparable flexibility to their prospects,” mentioned IMDA communications and advertising cluster director Foo Wen Dee.
“IMDA expects telcos to safeguard their prospects’ pursuits, and to take their suggestions severely.”
The IMDA was responding to 2 letters printed in ST on Aug 27 and Sept 4, by which the writers questioned the observe of requiring prospects to present discover of termination for contracts which have run out.
The primary letter, from Dr Jeremy Teo, gave particulars of his expertise with M1’s seven-day discover of termination coverage.
“To make prospects name in on an arbitrarily outlined date or topic them to penalties or to proceed billing is unfair and unethical,” Dr Teo wrote.
The second letter, from Mr Cheng Shoong Tat, argued that such practices fly within the face of the fundamental ideas of contract legislation.
The Shoppers Affiliation of Singapore (Case) additionally weighed in on the matter yesterday, calling M1’s termination coverage “too onerous” and urging the telco to overview its practices.
“It’s unfair to require shoppers to make the request to terminate the contract solely on a selected day, particularly for long-term contracts,” mentioned Case president and Mountbatten MP Lim Biow Chuan.
Shoppers needs to be allowed to terminate their broadband contracts so long as they offer a minimal of seven days’ discover, he mentioned.
Mr Lim additionally famous that discover durations for termination differ among the many telcos. As an illustration, Singtel doesn’t specify a minimal discover interval whereas StarHub requires a discover interval of not less than one month.
“We advise shoppers to scrutinise the phrases and circumstances, and pay particular consideration to clauses associated to termination,” he added.
On Monday, the Competitors and Client Fee of Singapore printed a set of value transparency tips warning towards deceptive promoting practices.
The rules, which take impact on Nov 1, cowl 4 areas: drip pricing, which refers to charges added on to the marketed value through the transaction course of; false or deceptive value comparisons; pretend reductions; and use of the time period “free”.