Consumers' consent must for VAS products embedded in SIM:TRAI

To check mis-selling by telecom operators, sectoral regulator TRAI has directed them to seek explicit consent of consumers before activating value-added services embedded in SIM cards.
The Telecom Regulatory Authority of India (TRAI) said it has received complaints wherein value added services (VAS) embedded in the SIM card were activated by operators without consent.
The SIM cards come embedded with various utility and other value added products.
"...It observed that the genesis of some of the complaints is that a number of VAS products are embedded in the SIM card and in many cases the consumer accidentally or unknowingly clicks these products and the consumer is immediately charged for the service," TRAI said.

It added in such cases, the consumer is not provided with any information regarding the applicable charges and also without being offered any opportunity to give consent as to whether he wants to proceed or not.
TRAI had earlier directed telecom operators to obtain explicit consent of consumers "through consumer originated SMS or e-mail or FAX or in writing within 24 hours of activation of the value added service and charge the consumer only if confirmation is received from him".

The regulator said services embedded in SIM cards relate to pay use VAS products and are not subscription based VAS products and the telecom operators have not implemented its directions for such products.

The operators said that since SIM embedded VAS products are not subscription based and TRAI's directions are applicable for only subscription based VAS.
"Now, therefore, the Authority...Hereby directs all access service providers to ensure within sixty days of issue of this direction that the VAS for products embedded in SIM application tool kit (STK) of SIM card is provided to the consumer only after obtaining the explicit consent of the consumer," TRAI said.
TRAI has taken several measures to protect the interest of consumers from time to time to prohibit activation of value added services without the explicit consent of consumers.

TRAI has also issued directions which prohibit activation of value added services without the explicit consent of the consumers and also prescribed the manner in which the explicit consent is to be obtained.
TRAI has also made it simpler for the customers to deactivate VAS through a common toll-free number (155223) accessible through SMS or call across all operators.