Protecting consumers

CONSUMERS of products and services from the communications and multimedia industry must be aware of their rights and not be afraid to exercise them. The general consumer code of practice for the communications and multimedia industry is there to help educate consumers on their rights as well as set benchmarks for the industry. K. Chelvakumar, chairman of the communications and multimedia consumer forum of Malaysia (CFM), says the code is the industry’s commitment to deliver. The code was voluntary in development, but binding to licensees under the Malaysian Communications and Multimedia Commission (MCMC), and because of the licence condition that requires compliance with the industry’s self-regulatory code. Licensees include service providers, telecommunications, and broadcasting companies. The code is the first voluntary code under the Communications and Multimedia Act, 1998 (CMA) and it took over three years to create. Supply and demand The CFM consists of 48 members from both the supply (such as service providers) and demand (non-governmental organisations representing consumers) sides. According to Chelvakumar, the code started when a protem committee was formed under the behest of the MCMC. In 2001, the CFM was registered and sought designation as the industry self-regulatory body. The society’s task was to come up with the code and handle other matters such as complaints. The CFM had the public consultation process via a nationwide roadshow, and got feedback from consumers. Consumers in Sabah, for example, want the code to be translated into Mandarin, and the CFM is looking into that matter. Chelvakumar says the feedback was included in the code where possible. The code was registered with the MCMC on Oct 17 this year. Careful deliberation Apart from setting benchmarks and handling customer complaints, the code also aims to create an inexpensive mediation process for customers in the event of a breach of the code, protect consumer information, and promote consumer confidence in the industry service delivery. According to Chelvakumar, the code took a long time to come to fruition because it went through a process of careful deliberation. He says there was strong participation from consumer groups and service providers to come up with the benchmarks. “The benchmarks were devised according to the MCMC and the principle of the code,” he adds. “Bigger companies will already have them in place, but new businesses need to know.” Having a code sets a reasonable standard for the industry as a whole, and consumers are really the ones who benefit from the better service overall. Major sections There were many discussions on information, billing accuracy and product bundling, the major sections of the code, within the code drafting committee. According to Chelvakumar, the demand side wanted adequate information to be supplied prior to the contract between the demand and supply sides. The code requires service providers to ensure customers are able to obtain information on their current bill or any item on it with no charge and billing is timely with verifiable accuracy, he says. Service providers are also to retain customer bill records for a minimum of a year. Information on third-party suppliers should be given to the consumer when products are bundled. In terms of advertising, the code has a detailed section on how products and services should be advertised to the public, so as not to mislead them. For example, if a service provider makes a saving claim in an advertisement, it must be substantiated, and whatever conditions consumers need to fulfil to qualify for the savings must be stated clearly in the advertisement. Service providers have been given six months to comply with the code beginning this month. Chelvakumar points out that the major service providers are already mostly compliant with the code, with some adjustments left to be made. Soft approach CFM’s advantage is that they are able to give customers the soft approach as there is a process in place to handle complaints. There is an online complaints form available at www.cfm.org.my, and complaints can also be filed in person, by phone or by mail. The first course of action for complainants is contacting the service provider, and consumers can contact the CFM if they are not happy with the solution offered. Service providers have a timeframe stipulated in the code to acknowledge and respond to complaints. Written complaints have to be acknowledged within three working days of receipt of the complaint. Complaints should be resolved within 30 working days from the time of submission, and if it is going to take longer, service providers must provide complainants with regular updates on the progress of the matter. Chelvakumar says as an independent third party, the CFM can tell the consumer if the solution offered to the consumer is fair or not. Though the major service providers are represented in the CFM, the demand side outnumbers them in the elected council. The CFM verifies each complaint to see if there is a code breach, and will talk to the service provider in the event there is. If a settlement cannot be reached between complainants and service providers, the CFM can refer the matters to the MCMC if consumers are still not satisfied. Sub-codes According to Chelvakumar, 2004 will be the CFM’s awareness and complaints handling year, with several activities such as roadshows and competitions to increase public awareness of the code. The code will be revised every two years, and sub-codes are in the works for Internet spam, among others, he says. Sub-codes can be devised as the need arises, he adds, as the main code is already available. Chelvakumar says the success of the code will depend on public awareness of it and of their rights as consumers.