Smart penalizes 50 cellphone content providers for violating sales guidelines

By EMMIE V. ABADILLA
October 18, 2009, 1:47pm

Smart Communications Inc. this week penalized 50 content providers (CPs) for violating guidelines on selling Value-Added Services (VAS) – enlisting users in unwanted subscriptions, sending cross-selling text messages and launching new services without Smart’s prior approval, failure to deactivate VAS subscriptions as well as inability to follow content delivery format and parameters.

The sanctions against errant CPs ranged from warning letters and one-month suspensions to outright termination of their contract with Smart, says Roy Ibay, head of Regulatory Compliance.

Since 2006, when Smart started to tighten its rules to protect subscribers and abide by the mandate of the National Telecommunications Commission (NTC), the carrier has penalized CPs for more than 250 infractions.

“As a result of our efforts, the incidence of such violations has steadily gone down over the past few years,” he added.

“Our users should receive a welcome message that includes the promo offer itself, instructions on how to subscribe or opt-in, how to unsubscribe or opt-out, tariff and the frequency of the delivery of the service,” explained Smart’s Public Affairs Group Head, Ramon R. Isberto.

Offenses such as the CPs failure to deactivate VAS subscriptions, sending cross-selling text messages to subscribers without clearance from Smart and not following content delivery format and parameters are classified as major violations.

On the other hand, the CPs not following the standard opt-out message, failure to submit a weekly report to Smart that lists the mobile phone numbers of subscribers that have enrolled in various VAS subscriptions, failure to process opt-out requests of subscribers within 24 hours, are considered as minor infractions.

“We are strictly enforcing our guidelines to ensure that our subscribers are properly protected, he concluded.