Consumers at Wasps' mercy

Two of SA's largest mobile operators have yet to implement a double opt-in system, leaving subscribers susceptible to inadvertently signing up for services that cost as much as R5 a day.

The Wireless Application Service Providers' Association (Waspa) receives about 150 000 complaints a month from people who want billing to stop on the services, which range from motivational messages to adult content.

So far, only Vodacom - which has 29 million of SA's more than 50 million SIM cards - has implemented a system that eliminates the possibility of people signing up for cellphone services without their knowledge, or by accidentally clicking on a link.

Wasps are required to confirm that subscribers intend signing up for a service, but - because there is not a technical rule - enforcement of this rule is difficult to ensure. Only Vodacom has put a system in place that gets rid of this problem.

Vodacom's system requires a confirmation from customers that they do want to sign up for the service. Without a confirmation return SMS, at no charge, the Wasp cannot bill consumers because Vodacom has taken control of the opt-in aspect, explains executive head of corporate communications, Nomsa Thusi.

The double opt-in system was designed to provide a third-party billing mechanism that would make it impossible for Wasps to bill customers without their consent. Vodacom has full control over billing Wasp services.

Since the system launched, last December, the operator has not had any instances of people arguing they have been automatically signed up without their knowledge, says Thusi.

Thusi explains that, in more than 90% of cases where people said they had not signed up, investigations showed they had communicated with the Wasp.

However, there are instances in which people are “lured” into subscribing. Waspa recently upheld a complaint in which a subscriber alleged he came across a Web site that lured consumers into subscribing to services under false pretences.

Cell C is in the process of evaluating a technical solution for a double opt-in service for implementation late this year or in early 2013, says executive head of communications, Karin Fourie.

The solution aims to protect customers from wrongfully being billed for subscription services, says Fourie. She notes that Waspa continues to enforce a double-opt-in practice.

Currently, Cell C refunds customers when it is proven they have been wrongfully billed, says Fourie. Subscription services also have opt-out options, she adds.

Pieter Streicher, MD of BulkSMS.com, explains that it is possible for wireless application service providers to bill any mobile number for various amounts and mobile operators will only know if the charges are fraudulent if consumers complain.

Streicher says there have been instances in which people complained that they did not sign up and were not notified of the service, and successfully reversed the billing, because the Wasp could not prove otherwise.

There are many complaints on consumer sites such as HelloPeter from people who argue they never agreed to value-added services and were shocked when they saw the billing.

The problem arises when people sign up, but forget they have done so, or inadvertently click on a link when surfing on their phones, says Streicher. Mobile surfing often does not require people to fill in forms, and the small text may not be apparent, he says.

Many cellphones access the Internet in the same way a PC does, but people do not realise that the handset has a link to phone bills, which affords new billing mechanisms to content providers, notes Streicher. This can catch consumers unaware and could result in unexpected cellphone charges.

Streicher says the question of proving whether the consumer mistakenly signed up, or has been illicitly auto subscribed is difficult because it is one word against another. “It's an impossible situation.”

The only solution, says Streicher, is that operators implement a system that allows them to provide an audit trail. However, he notes that only Vodacom has done so, while the other operators are working on a solution.

MTN did not respond to a request for comment.