MCMC fires final warning letter to TM over misleading ad for unifi package

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The Malaysian Communications and Multimedia Commission (MCMC) has issued Telekom Malaysia a final warning letter to comply with Section 1.2 of the Consumer General Code of Practice (GCC) which requires the service provider to provide sufficient, accurate, true, up-to-date and in simple language to the user. This comes after it recently investigated consumer complaints concerning the reduction in the upload speed of TM's new unifi 500Mpbs package. The complaint had alleged that TM initially offered a package speed of 200Mbps but after reviewing TM's official website, the complainant noticed that the packaged had changed since 2 September, with the upload speed reduced by half to just 100Mbps.

Concerning this issue, MCMC said the telco was asked to correct all promotional materials and advertisements on all advertising channels as well as create a communication plan for the affected customers. The commission added that TM must at all times adopt an ethical business approach by ensuring that advertising and promotional materials are accurate. It also reminded telco in the final warning letter that it has to ensure that its customers enjoy the quality of service as contained in the subscribed package and inform customers of issues that may cause their service usage experience to be disrupted.

"MCMC will ensure that customer rights affected by confusion arising from changes in unifi 500Mbps package information are dealt with fairly by TM. Failure to comply with the instructions issued through this final warning letter may result in action being taken under Section 242, Communications and Multimedia Act 1998, which provides for a fine not exceeding RM100,000 or imprisonment not exceeding two years or both if convicted," MCMC said.

The commission also said it hopes that the incident will serve as a reminder to all service providers to ensure that consumer interests continue to be the foundation of all business practices. To improve consumer protection, MCMC said it is currently reviewing the GCC so that service providers are more attentive in consumer-related practices. A+M has reached out to TM for comment.

Separately, TM clarified itself shortly after MCMC launched an investigation. In a previous statement, the telco assured consumers and stakeholders its commitment to consumer rights and protection. "We regret the error and have issued a clarification statement regarding the matter on Friday night. We continue to be transparent in informing our customers on this, and are tightening our processes to ensure this does not recur," it added.

It also clarified previously that a correction was made to an error in the upload speed for its 500Mbps package stated in the frequently asked questions section, unifi portal and leaflets on 2 September. The correct upload speed configuration for 500Mbps is 100Mbps instead of 200Mbps stated in the earlier version of the FAQs, unifi portal and leaflets, TM said.

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