Damage related to mobile communication services continues to occur in elderly consumers

- Efforts to protect elderly consumers are needed -

    Complaints and damages related to mobile communication services constantly occur in seniors aged 65 or above. Accordingly, the Korea Consumer Agency (President Lee, Hee-sook) conducted an investigation on three (3) major mobile service providers regarding their cell phone plans and provision of information about the discount program for seniors.

□ One of the ten consumer damage redress applicants related to mobile communication services is an elderly consumer.

    The KCA analyzed 2,255 consumer damage redress applications regarding mobile communication services received for the last two (2) years (2017-2018), and found that the number of damage redress applications made by elderly consumers aged 65 or above amounted to 231 (10.2%).

□ There is almost no difference between seniors plans and general low-cost plans provided by three major mobile service providers.

    In order to prevent damages occurring to elderly consumers, it is important to be fully aware of information related to contracts, including cell phone plans, etc., before a contract is concluded. Accordingly, the KCA compared and analyzed the cell phone plans for seniors provided by the three (3) mobile service providers in an attempt to help elderly consumers make better and more reasonable choices.

    The results of the comparison and analysis showed that there was almost no difference between seniors plans and general low-cost plans* newly launched by the three(3) mobile service providers in voice calls, text messages, data, etc., except for supplementary services. Rather, some seniors plans provided less data than the general low-cost cell phone plans.

    * SKT TPlan Small, KT LTEBasic, LGU+ LTE Data 33

[ Comparison between senior plans and general low-cost cell phone plans of the three major mobile service providers ]

* Phone calls, text messages and data, except for supplementary services, were compared.

□ Active promotion for the cell phone plan discount program for basic pension recipients is needed.

    According to the investigation conducted by the KCA on the provision of information regarding the cell phone plan discount program for basic pension recipients (aged 65 or above) implemented from July, 2018, all three (3) mobile service providers provided information about the program on their homepage.

    Nonetheless, it is necessary for the mobile service providers to make efforts ▲to continuously develop a guide to the cell phone plan discount program, ▲give a sufficient explanation before a contract is concluded, etc. in that seniors who are eligible for the discount program may not be able to know the program is being implemented through the information provided on the homepage.

     With regard to those efforts, relevant organizations have made promotional efforts for the program, including sending SMS text messages related to the discount program, displaying notices for the program at sales agencies, etc., and they have also said that they will work with mobile service providers to reinforce the promotion of the program.

    Meanwhile, the KCA also investigated the terms of use of the six(6) mobile service providers (three(3) major mobile service providers and three(3) mobile virtual network operators(MVNO)*), and found that five(5) of them had provisions for child protection,** but all six(6) did not contain any separate provisions to protect senior consumers in their terms of use. * top three(3) mobile virtual network operators in the number of subscribers as of 2017: CJ Hello, SK Telink, Inscobee

** Main contents of the terms of use, cell phone plans for youth, matters regarding application for blocking adult websites, etc. were indicated in usage contracts for youth.

□ Improvement in operation of seniors plans, and creation of terms of use to protect elderly consumers are needed.

    Based on the comparison and analysis results, the KCA recommended the mobile service providers in question ▲to differentiate seniors plans from general cell phone plans, ▲to promote the cell phone plan discount program for seniors, and ▲to add provisions to protect senior consumers to the terms of use of the mobile service providers. Furthermore, it also plans ▲to request relevant organizations to develop a standardized guide for seniors, which provides information about seniors plans, etc.

    Going forward, as an institution dedicated to helping consumers make better and more reasonable choices, the KCA will make effort to protect consumers from the socially-disadvantaged classes, including seniors, and to contribute to realizing social values.