UNSOLICITED TELEMARKETING CALLS (Protection of consumers)

UNSOLICITED TELEMARKETING CALLS

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(Protection of consumers): **

18.

Prof. Ivan Png Paak Liang asked the Minister for Information, Communications and the Arts if he will consider protecting Singapore consumers from unsolicited telemarketing calls, especially to their mobile numbers when they are roaming overseas, through either regulation, appropriate technology or both.

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Dr Lee Boon Yang: Prof Png asked about protecting Singapore consumer from unsolicited telemarketing calls. In a free market economy, we must expect businesses to become more creative in their efforts to win customers. MICA recognises that telemarketing is a common and bona fide marketing tool used by companies in many countries, but also acknowledges that irresponsible telemarketers are a nuisance to consumers.

Telemarketing involves one-to-one voice communication, which falls in the realm of private communication. As such, it is difficult to regulate this form of communication. Indeed, it may cause alarm among the public, if the Government were to monitor such private communication. For this reason, MDA and IDA do not regulate the content and mode of personal communications over the telephone. A balance must therefore be sought between curbing irresponsible telemarketing and the Government's intrusion into the area of free communication and privacy. Instead of direct intervention, there are a number of other safeguards to protect the consumers.

Under the Telecom Competition Code, IDA prohibits telecom licensees from providing their subscribers' information to any third party for marketing any goods and services. However, telemarketers may not be telecom licensees, and may have solicited, through legal channels, the users' telephone numbers, which means they may not be covered by the Telecom Competition Code.

Hence, industry-led initiatives are important means to address consumers' concerns. For example, the Mobile Marketing Council of Singapore (MMCS) was founded in January 2003, under the auspices of the Direct Marketing Association of Singapore (DMAS). It includes representatives from various segments of the mobile marketing industry, such as advertisers, mobile operators, mobile services providers, and mobile technologies providers. Its goals include sharing best practices and advising on legal compliance. In 2004, in response to growing concerns by mobile subscribers, it set out to draw up a position paper on mobile subscribers' privacy. MMCS is currently working with DMAS on a set of guidelines for responsible mobile and e-mail marketing.

Just last month on 25th August 2005, the Contact Centre Association of Singapore (CCAS) partnered with the Association of Banks in Singapore (ABS) and the Insurance and Financial Practitioners Association of Singapore (IFPAS) to release a set of telemarketing guidelines for the finance industry. These guidelines establish a common understanding of acceptable conduct when telemarketing financial products.

MICA welcomes further initiatives by industry associations to promote best practices in telemarketing and other forms of direct marketing.

Lastly, there are simple measures that each one of us can adopt to prevent or reduce unsolicited calls to the mobile numbers. For example, consumers can use the caller-ID function to screen local calls. Consumers can also buy mobile phones with a built-in function to reject or alert any calls from unknown numbers. These mobile phones are commonly available from several manufacturers. However this may not work when a subscriber is roaming overseas, as the call is re-routed and the availability of caller-ID is dependent on the commercially negotiated terms between the operators in the two countries.

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To sum up, in an increasingly connected world, telemarketers must adopt ethical practices. We will continue to engage the DMAS and MMCS to promote responsible mobile marketing through industry guidelines and best practices. Meanwhile consumers should also exercise care when disclosing their contact information so as to prevent or reduce unsolicited calls from telemarketers.

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