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Consultation Paper on The Customer Complaint Settlement Scheme

  • Consultation Papers
  • 2010.09.09

Basic Principles

The Council (CC) welcomes putting in place a consumer complaint settlement scheme that is user-friendly, timely and fair. With the right to redress being one of the 8 consumer basic rights, CC considers that all consumers of telecommunications or communications services should have the right to redress. CC therefore urges OFTA to provide for the CCSS to be accessible to any consumer for resolving contractual disputes in relation to telecommunications and communications services.

Whether CCSS should be Mandatory

CC agrees with OFTA that a low rate of participation is not conducive to the development of an industry-wide ADR scheme for telecommunications services. CC is also of the view that a light-handed approach for the CCSS is not appropriate and that OFTA should consider attaching special conditions in the nature of special condition 36 of the unified carrier licence to mandate operators to participate in the future CCSS. Scheme membership should also be made open to other "licensed" telecommunications service providers such as class licence holders or "non-licensed" mobile content providers who are interested in joining.

CCSS Relation with OFTA

CC supports the independence of the appointed ADR organization in addressing contractual disputes in telecommunications services. There should be guidelines on the compositions of the Board of Directors of the ADR organization providing the services, and the Board should comprise well-regarded community personalities equipped with knowledge of telecommunications services and consumer protection.

Scope of the Scheme

CC welcomes the proposal that the CCSS should not be confined to licensable services and should also cover other unlicensable services. CC urges the Government to consider adopting requirements similar to SC36 in the broadcasting licences to mandate pay TV and mobile content service providers to submit consumer disputes for handling under an approved independent dispute resolution scheme after the merger of the Broadcasting Authority and the Telecommunications Authority in future.

The Mode of CCSS

CC is concerned about the effectiveness of the CCSS if only pure mediation without adjudication is provided. CC finds the option of informal mediation plus adjudication preferable. CC considers that the CCSS providers should clearly explain the respective rights and obligations (e.g. award is non-final but non-compliance may constitute a breach of the obligations) under these informal mediation plus adjudication processes to consumers who take up the services.

Funding Arrangement and the Fee Level

CC has no comments on whether the funding responsibility of the CCSS should be ultimately taken up by the telecommunications industry or the Government. However, CC considers that the portion of the variable costs of the CCSS to be shared by claimants should be kept as minimal as possible and the fee level should not become an economic disincentive or discourage vulnerable consumers from submitting their complaints to the CCSS, which would prejudice the consumer right to redress.

CC is of the view that a case fee charged should be affordable and should be at a rate proportionate to the amount involved in the dispute. CC suggests that a fee waiver mechanism should be considered to waive the application fee if the amount in dispute falls under a certain amount, or if a complainant cannot afford to pay. Consideration should be given to refunding the case fee to a claimant if the complaint is substantiated.

Quota of Cases to be handled

CC is concerned about possible public reaction to setting of a quota and the proposed quota of 1000 to be handled by the CCSS in the first year. It seems grossly insufficient to meet the demand of consumers given that the number of complaints received by CC and OFTA is more than 10,000 a year. Considering that there is no quota on the current complaint handling services of CC and OFTA, it is important for the Government to explain to the public why a quota will be set for CCSS.

Binding Nature of Decision

CC agrees with the Government that a decision binding on both sides (rather than on the operators alone) would seem in the context of the CCSS to be a more balanced and reasonable arrangement. It is also conducive to achieving expeditious and efficient disposal of contractual disputes.