KCC: "Automatic Switching of Mobile Plans Without User Consent... Telecom Companies to Expand Notification Obligations"

[Asia Economy Reporter Seolgina Jo] Mr. A recently noticed an unusual amount charged on his child's mobile phone bill. Upon inquiry with the mobile carrier, he was informed that the plan had been automatically changed from a plan for children under 12 to a youth plan because the child had aged out. Mr. A claimed he was not notified, but the carrier stated that they had sent a text message before the plan was automatically changed.

Going forward, automatic switching of mobile plans without clear user awareness is expected to be eliminated. On the 21st, the Korea Communications Commission announced that it will push for improvements to terms of service that expand the notification obligations of mobile carriers and strengthen user choice when plans are automatically switched due to reaching a certain age or contract expiration.

Currently, there are no clear mandatory regulations in the terms of service regarding the timing of switching plans based on specific age or conditions such as children, youth, or military personnel, or before and after contract expiration, so carriers notify users according to their own standards.

However, as complaints have continued about users not properly recognizing such notifications and being charged unexpected fees due to automatic plan changes, the need for system improvements has grown, including clearly defining notification methods, frequency, and targets.

Accordingly, the Commission will expand notification methods to include email in addition to text messages (SMS) and billing statements, allowing users to choose. It will also newly incorporate into the terms of service an obligation to notify users at least three times: before, on the day of, and after the plan change. If the subscriber is a minor, the legal guardian must also be notified.

This will enable users to select plans considering their usage patterns and new plan releases in line with the timing of plan changes. The Commission plans to further discuss providing the necessary link (URL) for plan changes via text message.

The same applies when the typical 24-month contract period expires. Carriers notify users that the contract discount ends and the contract is automatically renewed, but it remains difficult for users to recognize this. Especially when the subscriber is a minor, legal guardians are currently not being notified. The Commission will also expand notification methods and require at least three notifications before, on the day of, and after contract expiration.

The revised terms of service will be implemented after the three major carriers complete the Ministry of Science and ICT reporting procedures. Chairman Sang-hyuk Han stated, "Since mobile communication services are closely connected to the daily lives of the public, it is very important to translate recurring complaints into system improvements," adding, "We will continue to listen to the voices of the people and actively improve even small inconveniences without overlooking them."