Premium SMS Charges: No Place To Hide

Thursday May 28, 2009

We have all seen the late-night advertisements and may have even purchased a ringtone or two from a quality premium SMS service provider. However, after over 3000 complaints about faulty bills, the inability to cancel premium SMS subscription charges and teenagers and other users unknowingly signing up to an expensive premium service, the rules have been changed.

Sweeping reforms made by the government aim to crack down on rogue premium SMS operators and make the true cost of premium SMS charges much clearer. Companies must now also include hotlines for customers having trouble cancelling subscription services as well as a clearer way to display the cost of services advertised.

Specifically, changes include:

• A double 'opt-in' that requires mobile phone users to confirm their understanding of the plan two times
• SMS alerts about the amount you are spending on SMS services
• A one day limit to be unsubscribed from an SMS service
• Once pre paid credit is used, no more charges can be allowed to accrue

The changes are due to come into enforcement from July 1st and companies failing to comply with new standards face huge penalties. While there is nothing wrong with subscription services or knowingly ordering premium SMS, the new rules will make the system more transparent and avoid customers from unknowingly being ripped off.

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