New regulatory framework for the protection of telephony, Internet and cable TV customers

By Matias Ferrari. 

On March 5th entered into force the Regulation on Customers of Information and Communications Technology Services (the «Regulation») -approved by Resolution 733-E/2017 of the Ministry of Modernization (Ministerio de Modernización)- which sets forth a new regulatory framework for service providers of: (i) mobile telephony; (ii) fixed telephony; (iii) internet access; (iv) television by subscription; and (v) broadcasting by subscription. (the «ICT Services»).

The Regulation shall not apply to those legal entities with corporate plans, negotiating its clauses and that have established that the Regulation is not applicable.

Following, you will find our outline of some outstanding points introduced by the Regulation:

1. Pro consumer principle
In accordance with the Consumer Protection Law No. 24.240, in the event that there is any discrepancy between any contract and the Regulation, the most favorable provision for the customer should be applied.

2. Acceptance of digital means to execute contracts and electronic means to communicate with customers
In the context of the recent amendments implemented by the Decree 27/2018, which contributed to the digitalization of processes of contracts acceptance, the Regulation allows that ICT Services contracts are executed by digital means and permits electronic communications with customers.

3. New rights for customers
New rights are incorporated for customers of ICT Services, including: (i) reception of services with a minimum level of coverage and quality; and (ii) access to a simulator/quote system provided by the website of each provider in order to analyze and compare different ICT Services offered by providers, among others.

4. Information duty and customer service
ICT Services providers should provide diverse information to customers through their websites and in their branches, such as, for example, the legal procedure to file a claim and the conditions of current plans and promotions, among others.
Moreover, ICT Service providers should provide customers with an option to be served in real time by a human operator.

5. Invoices
The invoices should be sent by ICT Services providers to the postal address indicated by customers with a minimum of 10 days in anticipation of its expiration. Digital means can be used only upon customers’ acceptance.

6. Protection of private data
The private data of customers should not be used by providers for other purposes than those expressly authorized by them. In the same vein, the provision of contents and applications, as well as advertising or commercial purposes messages, will require the prior and express authorization of the customers.

7. Amendments to the original terms of service contracts
Any contractual modification proposed by the ICT Services providers should be notified to the customers not less than 60 calendar days prior to their implementation and should be informed on its website. It should be noted that such provision maintains the regulatory criteria established by the Resolution SCT 9/2004. However, in the case of telephony service prices, the term is reduced to 30 days. In both cases, customers will be able to rescind the contract free of charge, as it is common for these situations.

8. Claims and disputes
ICT Services providers should respond to customers’ complaints within 3 days when the claims are due to deficiencies and interruptions of the service, 5 days when the claims are due to billing issues and 10 days when the claims are due to other grounds.

In short, the Regulation establishes a new regulatory framework aimed at safeguarding the rights of customers of ICT Services, adapting it to the convergence and evolution of ICT Services.

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