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MDA launches public consultation for pay-TV consumers

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In a bid to better protect consumers, the Media Development Authority (MDA) has launched a public consultation on ways to enhance consumer protection. This will come under the Media Market Conduct Code (MMCC).MDA last reviewed the consumer protection provisions in 2011. This four-week long public consultation is part of MDA’s efforts to protect the interest of pay-TV consumers, it said in a press statement.The consultation will run until 22 October.The consultation comes following an uproar earlier this year where consumers complained about the rising content cost against the public about pay-TV operators. MDA also earlier said that most standard consumer contracts are often long and drafted in legal language that may not be easy to understand for the consumers. Feedback received by MDA has indicated that there may be a need to increase consumers’ awareness, particularly on the expiry of promotional prices and complimentary content.MDA has proposed three key areas of changes to address key consumer concerns. The three key areas of recommendations are:1. Unilateral contract variations: MDA has proposed that operators allow pay-TV subscribers to exit their contracts without early termination charges (ETCs) if unilateral changes by the retailers are detrimental to subscribers. This could be due to an increase in subscription fee, removal of channels, removal of material content within a channel. However, it is also mindful that there could be possible abuse of this rule. It is hence proposing that consumers are only allowed to exit without ETCs no later than 30 days from the date of change. 2. Forced upgrade of non pay-TV services:Meanwhile, MDA also asked the public on its view on disallowing retailers from forcing subscribers to upgrade their non pay-TV services (such as broadband or phone service contracts) to make changes to their pay-TV services. However, retailers are allowed to offer such upgrades as options for their consumers’ consideration.3.Lack of awareness of important terms and conditions of service: MDA has also proposed that retailers are required to bring to consumers’ attention on several terms before the contract is signed. Some of these changes include specifics on price, channels and material content within a channel; changes to service upon the expiry of promotional or continuous services amongst others. Additionally, MDA also proposed for retailers obtain subscribers’ consent to continue with the trial or complimentary service before they can start charging.

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