China cracks down on mobile phone spam

Local firms tricking users into signing up for expensive services

Written by Simon Burns in Taipei

China's government has punished more than 30 mobile firms that sent spam text messages tricking users into signing up for expensive services, local media reported yesterday, citing sources at China's Ministry of Information Industry.

The firms include leading internet and mobile services company Tencent. Reports did not provide details of the offences or punishments. 

Advertisement

In similar cases in the past, companies have been fined or even barred from offering certain services for a short length of time.

The latest round of punishments is not the first run-in with the law for wireless value added service providers in China.

Last year, the government responded to a growing chorus of user complaints about unfair practices by changing the rules under which third-party providers can sell services over mobile networks.

Many customers said they were charged for mobile information services and downloads to which they had not agreed, or that their attempts to cancel expensive services were ignored.

With the introduction of the new rules, customers must receive clear and repeated warnings when they sign up for a new mobile service. This appears to be one of the rules broken in the latest wave of government sanctions.

Initially users were also mandated a one-month free trial of new services, but this regulation was discontinued after a few months.

Some mobile service providers have been severely hit by the government crackdown. Tom Online's parent company, for example, is attempting to delist it from Hong Kong's stock market after its revenues slumped. 

More broad-based firms have weathered the storm, however. Tencent, which operates China's most popular IM service, reported revenue from mobile and telecoms value-added services of $25.4m in the first quarter, a 20 per cent increase compared to a year earlier.

Tags:

Comments

White papers

Related jobs

More Accounting jobs

Spotlight

Stuart Bridges, Hiscox

Stuart Bridges: FD of Hiscox

Dull is the new black in these straightened times –...

Top 30 Accounting Networks and Associations 2008

The race to become the biggest firm on the planet...

Barack Obama Accountancy Age cover October 2008

Obama: asset or liability?

What an Obama presidency could mean for you

Find your next job

Find your next job
Salary Checker

Job of the week

More finance jobs

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Your next job

Have your say

Will proposed tax cuts help to stimulate the economy?
Yes
No

Advertisement

Search white papers

Search white papers

Advertisement