Waspa toughens laws

Johannesburg, 11 Mar 2009

The Wireless Application Service Providers` Association (Waspa) has introduced tougher penalties for content service providers.

According to the association, stiffer penalties have been introduced for members who breach the terms set out in the code of conduct. Different penalties apply for members who fail to send out billing reminders, via SMS, and those that send out reminders in incorrect formats, without all necessary information.

The association says any member that fails to send out reminder messages will be subject to a stiff fine - which is likely to be above R25 000 for a single offence.

Since February, the association has issued fines worth R248 500 for breaches to the code of conduct, with more than 20 judgements on complaints still pending. In January 2008, the association reported that R560 000 worth of fines were issued and over R1.6 million paid out by members since 2005.

The regulatory body adds that the actions of members who violate the codes will be monitored closely. This marks a change from previous efforts by Waspa where the organisation relied on complaints lodged to find out whether members complied with the code.

Waspa adds that repeat offenders would be subject to increased fines, as well as a 30-day suspension of its membership to the organisation - a move which could likely affect operations.

Membership of Waspa was made mandatory by the mobile operators and TV stations for any company providing value-added services, following the formation of the association in 2004. Adherence to the code of conduct and the advertising rules is mandatory for all providers.

Increased protection

The tightening of penalties follows amendments to the association`s code of conduct in November, which required members to explicitly notify customers once their service bill exceeds its limits. The body also warned, at the time, that contraventions of the code of conduct would carry penalties.

"Service providers will be fined significant amounts or face shutdown if they fail to adhere to these measures," Waspa said.

The Waspa code of conduct sets out requirements for its members regarding advertising, billing and content services. According to Waspa, the objective of its code of conduct is to ensure members of the public are provided with accurate information on services and billing and to also provide a means of dealing with complaints about members.

Waspa made amendments to the value of account thresholds and reminder messaging for customers. Service providers are now required to notify customers who have joined a service when their billing exceeds R300. The customer will also have to confirm whether they would like to continue with the service or not.

The association also introduced a new standard format for all Wasp ads on television, with an emphasis on ensuring all mandatory information is present and easy to read on televisions of all sizes.

The association stated the changes were brought on by trends by content providers to neglect to notify customers on their billing status and only liberal compliance with reminder messaging requirements.