Consumers normally subscribe to pay TV services for certain programmes. Therefore, their grievance is understandable when the programmes are cancelled or relocated to other channels not covered by their service plans.
The Consumer Council received 1,844 consumer complaints related to pay TV services last year. Complaints relating to contract alteration or termination have surged from 26 cases in the first 5 months of 2010 to 49 cases over the corresponding period this year, representing an increase of almost 90%.
The Consumer Council collected terms and conditions of 4 local pay TV services providers from their company websites, and found that all had laid down their unilateral rights to change the number of channels or service content. However, consumers will have to face penalty if they want to terminate their contracts due to change of services. Such policies are highly unfavourable to consumers.
As such, the Council conducted a survey to find out what alternatives consumers are given when there are changes in service contents. Highlights of the survey:
- In one of the examples, when a programme covered in the service plan is relocated to another channel, subscribers have three alternatives. Firstly, if the new channel covering the programme is included in the service plan, subscribers could continue to view the channel and no extra fee will be charged. Secondly, if the new channel is not included in the service plan, subscribers can sign up a new contract and pay additional fee for the new channel; or they can choose to keep the old contract and pay additional fee for the new channel.
- In another example, when a programme or channel covered by the service plan is terminated, subscribers will be given 30-day notice on the changes. The service provider will offer the subscribers a replacement until the service plan expires. Or subscribers can terminate the subscription of the affected channel. But they are still required to honour the contracts.
The above examples demonstrated the complexity of the terms and conditions stipulated by Pay TV service providers.
In view of such unfair treatment consumers might face when the change is made by the service provider unilaterally, the Council puts forward the following suggestions to the services providers:
- Subscribers should be given reasonable time of notice if there is significant amendment to the service or its terms and conditions. They should be allowed to terminate the service contracts without penalty if they give sufficient notice of termination of subscription (such as one month notice) to service provider.
- If the subscribers have prepaid the service fee, refund should be made on a pro rata basis, calculated with the effective date of related change.
- The service providers should provide a copy of service contract or written confirmation to applications for services or contract renewals made via customer service hotlines.
Consumers, on the other hand, should study the terms and conditions of the contracts before agreeing to subscribe or signing up for any service plans. Additional service conditions not printed on the service contract but agreed between the sales representative of the service provider and the subscriber should also be written down in the contract and countersigned by both parties.
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