Monday, July 12, 2010

Commercial company and opt-out

Dear Mr. Tan
My company (a SME) just received a letter from Singapore Information Services Pte Ltd (the company doing Yellow Pages). Please see letter attached.

The letter seems to imply that I must pay the charges ($1 per day) unless I "call, email or fax" by 31 Jul 2010. I did not remember paying anything in previous years or having any business relationship with them. I can understand if the government uses this "opt-out" scheme for administrative efficiency, but this is a profit-making private company!

I suppose if I ignore the letter, there will be another letter later on demanding payment. How many SME owners will be mislead or just pay to avoid trouble!

My question is
a) How can a big established company like Singapore Information Services employ such sales tactic?
b) Isn't CASE supposed to be looking after the interest of consumers?



Huang HW

9 comments:

Anonymous said...

I'd suggest to try;
- Competition Commission Singapore(CCS)
- website per below
http://app.ccs.gov.sg/

- CCS has legislative teeth

Alternatively, refuse to pay and take Yellow Pages to Small Claims Court.

This "opt-out" system is completely out of control.

Mr Tan Kin Lian might as well send Yellow Pages an invoice for the use of his prototype website. Unless Yellow Pages chooses to opt-out of his prototype service.

Or maybe I should start a social club called "High & Mighty". And mail invoices to all Singaporeans for membership fees, on an opt-out basis.

A Singaporean said...

In my experience, these companies use such opt-in sales tactics all the time. I will just relate one such experience.

I still remember that when I signed up for broadband internet connection, the company was still SCV. Then their DOCSIS cable modems were rented rather than sold.

A couple of years later, SCV became Starhub. Yet later, a couple of years ago, Starhub force sold all the rented modems to the subscribers, on the basis that DOCSIS modems have became industry standard. In other words, subscribers now own the modems, which are possibly a few years old.

In the process of force selling the modems, they automatically opt us into paying by instalments rather than paying in full. Naturally, paying in instalments cost more than paying in full. I did not find out about this before the first instalment has been deducted through my bill.

This episode is sore enough for me to remember it in general, although I don't remember all the details now.

Anonymous said...

I received this letter myself for my company. The best part is, their "hotline" seems to be engaged all the time.

I must agree that their opt out method leaves a sour taste in the mouth

Conspiracy

Anonymous said...

another method is throgh giro deduction that once u signed, the organisation can instruct the bank to deduct all kinds of charges.

Anonymous said...

While I cannot provide a legal opinion, I believe you cannot simply send legal persons invoices for services they have not accepted and expect them to pay.

They have no statutory powers to compel you to act in any manner.

And when will it become worthwhile for this company to bring you to court?

I have discarded such correspondence as junk mail do not dignify them with a response.

Anonymous said...

That is why I say our govt has provided lousy leadership and these companies are now just following the footsteps of our government.

ah mun said...

I also received such an invoice. Read carefully and you will realise that it is just playing with words, and with pretty bad English too.

Ignore it, & throw the invoice away.

There are quite a few other companies sending such invoices & letters making you think that you have to subscribe to their directories or services. I love to read them & check my intelligence.

Anonymous said...

To Anonymous 5.03pm

People who are knowledgeable like you may ignore them.

All it takes is for 10% of the people receiving the letter to pay either through ignorance or fear of getting into trouble.

How much money would they make!
If the authorities does not stop this, I'll go buy their shares!

Alex said...

I spoke to this nice SPF officer from CAD who said that if more companies complain - they will look into it. However, he cannot classify it as fraud as the company does provide the service if you do OPT for it. But if you don't you shouldn't need to pay. However, he has taken note of my complaint and is waiting to see if anyone else complains - so please send him an email to voice your complaints.

LOH YOON MIN
ASSISTANT DIRECTOR
DID : 65573995
Email: LOH_YOON_MIN@SPF.GOV.SG
CORPORATE FRAUD DIVISION (CFD)
COMMERCIAL AFFAIRS DEPARTMENT (CAD)
MINISTRY OF HOME AFFAIRS (MHA)

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