Spam relief in sight?

Spammers have illegally been charging end-users to opt-out of unwanted text messages for more than a year, despite a provision in the Consumer Protection Act to the contrary.

However, relief may be in sight, as the Wireless Application Service Providers' Association (Waspa) is meeting with mobile operators this week in a bid to find a solution that works for both parties.

In terms of the CPA, which became law last April, consumers have the right to restrict unwanted direct marketing and cannot be charged a fee to stop receiving this type of communication.

For more than a year, there has been no workable way of stopping unwanted SMSes without the user having to pay between 50c and 80c for every opt-out message they send.

Joe Botha, CEO of TrustFabric, says unwanted phone calls and SMS messages are intrusive and a waste of productive time. “The cost in wasted time from sales calls and SMS spam could be as high as R500 million per year,” he notes.

A Waspa spokesman says operators have instructed service providers to comply with the CPA. However, he says, while providers are required to implement reverse billing, the challenge is how to make the solution free to both providers and consumers.

mobile network operators and wireless service providers will be in talks this week over a proposed solution with a view to a solution, which will benefit all parties, being “imminent,” says the spokesman. “This question is what current negotiations between Waspa and the mobile network operators are focusing on.”

Waspa did not indicate what the proposed solution could be. “The end goal is to have a situation where opting out is free to all mobile consumers across all mobile networks - and Wasps are not unfairly prejudiced.”

BulkSMS.com MD Pieter Streicher explains there has been no acceptable solution to protect consumers from having to illegally pay to opt-out of unwanted SMSes as reverse billing opened Wasps up to abuse from consumers.

Streicher explains that a Wasp pays two-and-a-half times the cost of sending the original SMS, which would be affordable if opt-outs were limited.

Yet, as the solution is open-ended, consumers were able send endless SMSes, just because they have a grudge with a particular company, says Streicher. Initial experiments with toll-free, or reverse billed, SMS numbers showed these are regularly targeted, with individuals sending up to 2 000 messages, he notes.

Streicher says, as a result, wireless application service providers have not wanted to make use of the service because it created an “unlimited revenue risk”. Even using a system like USSD comes with a cost, he notes.

Consumers are left hanging with little recourse but to approach the National Consumer Commission (NCC), which was set up to ensure compliance with the CPA, or to log a complaint with Waspa, says Streicher.

However, SA's three largest cellphone networks say the reverse billing solution can be monitored for abuse.

Vodacom's executive head of corporate communications, Nomsa Thusi, says Wasps that charge customers to opt-out from direct marketing messages are contravening the CPA. Thusi notes that Vodacom has not picked up any abuse on its reverse billing system, but is in a position to stop it, should it occur.

Mike Fairon, GM of product development at MTN SA, says the operator's system, which is free for consumers, complies with CPA requirements. He adds that MTN SA has introduced processes to mitigate subscriber abuse to Wasps through its partner management framework.

Cell C's executive head of communications, Karin Fourie, says the cellular network will launch reverse billing next month. “Although it is zero-rated to the customer, Cell C will charge the Wasp a bearer fee per transaction for the facilitation of this service.”

Fourie says Cell C is in talks with Waspa to address the possible abuse that SMS senders believe they are exposed to by the implementation of reverse billing. Cell C will also “make every effort to negate such risk,” she adds.

Streicher says this recent development is welcome, but that operators also need to implement a system that frees Wasps from liability if a consumer abuses the system. He says Wasps cannot afford to carry the cost of abuse.

The NCC did not respond to a request for comment.