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Canadian nonprofit asks for stricter regulation of premium SMS promos

The Union Des Consommateurs, a Canadian nonprofit group, is asking for stricter regulations for text- message marketing promotions.

The nonprofit is organizing a submission for Canada's telecommunications regulator requesting strict rules for premium text messages.

"If you are asked to register your mobile phone number on a Web page or send an SMS from your phone to a short number, beware," Union Des Consommateurs says on its Web site for consumers.

"Many of these services are a form of subscription and once you subscribe, you receive a text message, then another, then another," it says. "The carousel can be expensive."

Mobile subscribers hit by this so-called carousel reported to the Canadian Consumers' Union (Union Des Consommateurs) that they have received several text messages per week, costing around two dollars each. They are also responsible for paying the regular texting fee where appropriate.

Legitimate marketers always reveal any costs associated with a service and ask consumers to agree in a straightforward manner.

Unfortunately the reality of it is that consumers do not always give informed consent.

The contract, when it exists, is often written in language that average consumers are not familiar with.

Often, consumers get their monthly bill and only then realize they were trapped into these fees.

The Canadian Wireless Telecommunications (ACTS) handles the short codes used by companies that send such SMS.

ACTS has published a code of ethics that says that consumers should be entitled to terminate the subscription and the company should provide some support to customers.

The Consumer's Union feels this is not enough.

Canadian customers have been complaining about these unauthorized charges.

Consumers have reported charges up to $300 for premium messages they don't even remember signing up for.

One customer complained to the Consumer's Union that they refused to pay the premium text message charges and as a result had their wireless service shut off by the carrier.

The group has asked the Council for Broadcasting and Telecommunications Commission (CRTC) to require carriers to remove charges for premium text messages from their customers' bills while a complaint is investigated.

The group is also asking carriers to refer complaints to the Commissioner for Complaints for Telecommunications Services for investigation and to forbid wireless carriers from turning off their customers' service when the subscriber is disputing premium message fees.

"The Consumer's Union is researching this problem and seeks solutions simpler for consumers," the group said on its Web site. "In some cases, companies that send SMS may have violated certain provisions of the act on consumer protection."