The National Consumer Commission (NCC) has refuted claims that a certain section of the Consumer Protection Act (CPA) precludes data and translates into a “disadvantage” for consumers.
A statement released by the Internet Service Providers' Association (ISPA) yesterday slated the “apparent intention of the NCC” to apply Section 63 that regulates when prepaid certificates, credits and vouchers expire, to data or other electronic services.
Section 63 dictates that the prepaid device only expires when its full value is redeemed, or after three years if the full value is still not redeemed - whichever comes first. Until the full value of the prepaid device has been redeemed, the unredeemed portion remains the property of the purchaser.
Joint chair of ISPA Marc Furman says this prescription will not only drive up prices considerably, but also hamper the drive to create jobs and increase broadband penetration in SA. He says the section precludes bandwidth, because “there is no prepayment device, which 'holds' the value to be exchanged for services in the future”. Rather, he says, it is an advance payment for access to services.
Patent policy
Not so, says NCC commissioner Mamodupi Mohlala. She contends that Section 63 of the CPA is “clear” in its inclusion of data and that it not only protects consumers, but is a “major advantage” to them. “[Section 63 protects consumers] from losing the value of what they have paid for merely on the basis of a limited time set by the service provider.”
The NCC last year issued compliance notices to various entities, stating that their data policies are in contravention of Section 63. While some subsequently amended policies to comply, others are undergoing internal consultation or are set to meet with the NCC before the end of the month.
Nicholas Hall, an attorney with Michalsons Attorneys, says Section 63 is ambiguous. “It is not worded well, and it is not clear whether that aspect of the Act covers data.”
Hall says if the NCC is successful in implementing the Act for data, there will be huge implications for ISPs in terms of monthly caps that will have to roll over for three years. “It's going to be huge if it goes through.”
Share
