THE TELECOMMUNICATIONS regulator has told mobile phone company O2 that it cannot bill customers electronically without their consent.
The Commission for Communications Regulation (ComReg) notified O2 on Friday it was violating the terms of its licence by switching customers to online billing without their explicit agreement.
The company has been given one month to remedy its non-compliance. ComReg may apply to the High Court if, at the end of the one-month period, it decides O2 has not complied with its obligations.
In August, O2 informed customers of its switch to online billing in a letter which began “If it’s okay with you, your next bill will be online instead of in the post”. Guidelines on how to opt out were provided at the bottom of the letter.
The Consumers Association of Ireland said the move was unprecedented because it forced customers to opt out of the change rather than giving them a choice.
ComReg will launch a consultation process on online billing next month, which will allow all stakeholders to air their views. In a statement, the regulator noted that in most cases where regulations with respect to billing apply, an online bill is permitted where “positive consumer consent” is obtained, and that a paper bill is to be provided, as standard, where such consent is not obtained.
O2, which has 1.7 million customers, says more than 70 per cent of its post-paid customers pay their bills online, with the rest having opted out by informing the firm they want to continue receiving paper bills in the post.
In a statement, O2 said it believes it is “in full compliance with its regulatory obligations and will respond to ComReg accordingly highlighting the very positive consumer reaction to its initiative”. It added any customer currently using online billing has the option to switch back to a paper bill at no extra charge.
ComReg said it recognised why electronic communications providers would want to switch to e-billing, given the potential benefits related to cost and environmental concerns.
“However, as previously set out, ComReg is of the view that any move to e-billing should take full account of, and safeguard, the legitimate preferences and interests of consumers and comply fully with licence and other applicable legal requirements,” it added.