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Case Studies
Telecoms Case Study
"How can we incoporate new terms and conditions into our existing consumer terms and conditions without losing the simplicity of the service we provide?"
Trouble Telecom is a small residential communications services provider offering residential carrier pre-select and broadband services to residential customers. With a view to becoming a triple play service provider, they signed up as a mobile virtual network operator with one of the five major mobile service provider and approached us to put into place the required documentation in relation to the provision of the additional mobile phone service to its consumers.
We met with Michael, the Project Manager at Trouble's premises who gave us a presentation of Trouble's five year business plan and how they intend on launching the triple play service so that at the end of every month, Trouble customers will receive only one bill for their phone, broadband and mobile service.
In line with their one-bill policy, they have requested that we incorporate insofar as possible, the new terms and conditions into their existing consumer terms and conditions so that the terms governing the purchase and use of Trouble services are set out in one single document. He reminded us that one of Trouble's appeal was the simplicity of its service plan and he would like that unique aspect of the business to be reflected in Trouble's existing terms and conditions.
In addition, we were also introduced to Joe who heads Trouble's Regulatory & Compliance Department. Joe informed us that there were a few un-orthodox selling methods which were adopted by Trouble in the past which had resulted in complaints to Ofcom for alleged mis-selling practices. He was extremely keen that Trouble complies with all regulatory requirements and also to promote confidence in the provision of its products and services to the existing and prospective Trouble customers.
After our meeting with Michael, we researched the mobile services on offer by Trouble to better understand the product. We were also conscious about drafting a straightforward and easily comprehensible legal document which is effective and fair. Furthermore, as Trouble had intended to take the promotion and sale of its mobile services online, we were careful to draft the terms and conditions in line with the requirements set out in the e-commerce directives, data protection legislations and marketing directives.
We met for further discussions with Joe and his team members to understand the nature of complaints he and his team had been receiving, the self-regulating policies, as well as the regulations and directives to be complied with for the marketing and promotion of Trouble's services as a whole.
We advised that one of the ways in which Trouble is able to effectively comply with its regulatory obligations are (a) to publish a Code of Conduct which incorporates the various self-regulating policies and the electronic marketing regulations; and (b) incorporate such regulatory provisions into its call centre agreements so that they become contractual obligations; and (c) procure that those employees or sub-contractors in the business of marketing and promoting Trouble's services are well trained so that they comply with marketing, telecommunication and data protection legislations and regulations.
Our suggested solutions enable Trouble to manage the level of its mis-selling allegations with Ofcom and arguably, provide it with some form of legal redress against the call centres for in the event they fail to comply with such regulatory obligations.