IDA takes action against errant telcos, Premium Rate Services providers

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The Info-comm Development Authority (IDA) has taken action against telecom operators and third-party providers in 26 cases involving Premium Rate Services (PRS), which are SMS messages with chargeable content, like ringtone downloads, games and quizzes.

The majority of providers were fined, with the highest being S$100,000.

Under a PRS code of practice, providers must ensure consumers take explicit steps to subscribe to the service.

IDA will take enforcement action against telecommunication operators or PRS providers where rules on the provision of PRS services are flouted.

The code sets out the duties for PRS providers and their billing network operators to prevent accidental subscriptions and wrongful charges for unsolicited service. Prices, terms and conditions must also be clearly published.

“Licensees can be fined up to S$1 million or 10 per cent of annual gross turnover, whichever is higher, per contravention. Repeat offenders could also have their licences suspended or cancelled,” said Minister for Communications and Information Dr Yaacob Ibrahim said in Parliament today.