TIO Annual Report 2006/07

MPSI Issue Analysis

On 1 December 2006, the TIO commenced recording complaints as the escalated complaint handling body for the MPSI Scheme. From 1 December 2006 to 30 June 2007, the TIO recorded 6,894 complaints under the scheme, with a total of 10,083 complaint issues. 181 of these complaints were escalated to Level 2, with 10 being further escalated to Level 3. One complaint is being investigated at Level 4.

The escalation rate for complaints recorded under the MPSI Scheme is the lowest for any service type under the TIO’s jurisdiction. Internet, mobile and landline complaints received under the TIO Scheme have escalation rates between 6.1 per cent and 6.9 per cent. Only 2.6 per cent of complaints received under the MPSI Scheme went on to be investigated at Level 2 during the 2006/07. This suggests that TIO Members are aware of their obligations under the scheme and are willing to resolve complaints at Level 1.

The TIO has some concerns that the MPSI obligations may not be being met until after a customer is referred back to a provider from the TIO. This view is based on the high number of complaints taken under the scheme, the relatively low escalation rate and the fact that the TIO can only record a complaint when the complainant has been unable to resolve the matter directly with their provider. Given the newness of the scheme, the TIO will be watching MPSI complaints closely over the coming year for evidence that the mobile premium services industry as a whole has embraced the scheme.

About 60 per cent of MPSI complaints related to claims that charges were incurred for services that were not requested. There are a number of possible reasons for this, one of which is that complainants believe that they are requesting a once-off service but are instead entering into an ongoing subscription. While content providers are obliged to advise that a service is provided on a subscription basis, and provide mechanisms for identifying the charges are on the account, the TIO records complaints at Level 1 based on the information provided by the complainant. Given the low escalation rates for complaints, most of these breaches are at Level 1 and would therefore not be investigated formally.

Almost 10 per cent of MPSI complaints related to a supplier either not actioning, or refusing to action, an opt-out request. The TIO is concerned that some suppliers or content providers may still not be aware of their complain-handling obligations under the scheme, or the TIO’s role as the escalated complaint handling body. In addition to 244 complaints recorded for an alleged failure of the supplier to assist the complainant to address their complaint, over 10 per cent of MPSI complaints related to an alleged failure of a supplier or content provider to provide information about the role of the TIO in handling complaints.

In investigating MPSI complaints, the TIO has regard to the provisions of the MPSI Guidelines. The Guidelines require content providers of subscription and non-subscription services to:

• notify customers when their expenditure exceeds $30 a calendar month
• or where their expenditure on a subscription service is less than $30 within a 30-day period, remind the customer that they continue to be subscribed. This obligation applies for each premium SMS service and/or short code.
  

The TIO is concerned at the number of content providers that do not assist customers to monitor and manage their usage of premium services by complying with the Guidelines. While the TIO does not have power to enforce the Guidelines, it considers them to be a benchmark of good industry practice that it will take into account when making an assessment of what is fair and reasonable in any given complaint.


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