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Illegal opt-out charges refunded

Lauren Kate Rawlins
By Lauren Kate Rawlins, ITWeb digital and innovation contributor.
Johannesburg, 21 Sept 2015
Tech analyst Liron Segev recommends deleting SMSes instead of opting out to avoid unnecessary charges.
Tech analyst Liron Segev recommends deleting SMSes instead of opting out to avoid unnecessary charges.

After sending an SMS to opt-out of a video service they never asked for, nearly 2 000 Vodacom, MTN and Cell C customers were charged R3.

The Consumer Protection Act states no fee can be charged for stopping direct marketing approaches.

It was reported in the Sunday Times that consumer Audrey Price-Dix lodged a complaint with the Wireless Application Service Providers' Association, and this was responsible for the refund to 1 786 consumers who opted out.

Nearly 45 000 people were sent an SMS stating: "You have been recommended to receive funny videos for R50/day. Otherwise Send STOP to 47672 now, T&Cs apply."

According to the newspaper, this SMS was sent by Xihari Consulting, a Pretoria-based company used by MTN IWS - an MTN-owned WASP.

The Consumer Protection Act requires marketing SMSes to state the name of the company, contact details and a link to the full terms of opting in or out. The SMS sent out by Xihari did not do this.

Just delete

Tech analyst Liron Segev says he would not even waste the 25 cents it costs to send a normal SMS to opt-out of these services. He recommends consumers delete these SMSes as they come in.

"This is not a new scam and has been going on for a while," says Segev, who said a few years ago the charge for an opt-out SMS could be as high as R30. "Companies have got it down now, in the hopes that consumers won't notice a R3 charge."

He said the wording of the SMS was ambiguous. "Consumers reading it would not be sure if they would be charged the R50 a day for a service they did not request, so would therefore opt-out, just to be sure."

However, Segev says double confirmation is needed before any service can take money from the user's account. He recommends consumers keep an eye on the premium or special services charge on their bill every month.

"If there is anything out of the ordinary, contact your service provider to find out exactly what the money is going towards."

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