Cellular giant MTN aims to continue its partnerships with the providers of a controversial “brain age” scheme.<\/p>\n
Earlier this year Moneyweb reported on how iTouch was infuriating some of its customers by charging them R10 a day for its “services”. Some customers claimed to have been charged without even accepting the service. Others admitted to accepting it, but argued they would not have done so if the costs and details of the service were better disclosed.<\/p>\n
When Moneyweb became aware of the anguish the brain age scheme was causing readers, we immediately blocked it from advertising on our website.<\/p>\n
Complaints were made to the Wireless Application Service Providers’ Association (Waspa), whose independent adjudicator took the customers’ side and fined iTouch R50 000. Waspa also ordered iTouch to suspend its “service” until such time as it complies with a prescribed set of changes.<\/p>\n
A glance at Waspa’s complaints section shows that iTouch and its Milan-listed parent Buongiorno are no strangers to sanction. They have received numerous fines over the past four years, totalling more than R800 000.<\/p>\n
Some readers questioned the role played by cellphone companies such as MTN and Vodacom, which deduct money on behalf of these serial offenders. Surely these companies have some duty to protect their subscribers from potential abuse?<\/p>\n
MTN general managers for legal and regulatory affairs Graham de Vries says that to block these service providers would be like “hitting a fly with a sledgehammer”.<\/p>\n
De Vries argues that Waspa performs an effective role in bringing errant service providers to book, and that if the regulator body were to order a service provider be blocked then MTN would certainly comply.<\/p>\n
Controversial competition<\/strong><\/p>\n MTN has been making waves itself recently with a competition to celebrate its 15th birthday. It sent out an SMS to subscribers saying: “MTN is giving away thousands of handsets, 87 Mini PCs, 14 Toyota Fortuners, and 1 House Bond of R1 000 000! Text “15” to 37187 (R7.5\/SMS) and start winning…”<\/p>\n Sane people would interpret this message to mean that if they sent the SMS, at a cost of R7.50, they’d stand a chance of winning the prizes on offer. This assumption would be incorrect.<\/p>\n In fact, if they sent the SMS, they would receive another SMS, inviting them to participate in a quiz. Each answer they sent would be charged at an additional R7.50.<\/p>\n What happened to the good old days when a competition entry cost the price of an ordinary postage stamp (currently R2.25)?<\/p>\n MTN has since amended the wording of its original SMS, in what is perhaps an admission that it was misleading.<\/p>\n Some would argue that the original SMS breached the Waspa code of conduct. However, this claim has yet to be put to the test. A Waspa spokesperson tells Moneyweb that the regulator does not have any jurisdiction in this matter, since MTN is not a Waspa member.<\/p>\n MTN responds that the competition does comply with the Waspa code, and that it is a member, via a division called IWS. However, the SMS competition was not conducted by IWS, and therefore it is doubtful whether Waspa would be able to accept complaints against it that relate to MTN’s competition.<\/p>\n De Vries says that MTN will consider registering with Waspa in order to give its customers the right to have their competition complaints heard by an independent adjudicator. In the meantime any customers with grievances relating to the competition should contact the call centre on 083 173.<\/p>\n MTN birthday SMS competition<\/a><\/strong> – give your views<\/p>\n