Telecom firms restrained from holding contests

NEW DELHI: You will no longer be able to take part in contests where a phone call could bag you prizes like a car or a gold coin as the Delhi Consumer Commission has restrained cellular companies from holding such competitions.

Noting that such contests amounted to "unfair trade practices", the Commission, in a common order, directed all telecom companies to stop organising, announcing or declaring such schemes, contests or lotteries.

"Prima facie, it appears that the contests are being held not for the interest of phone users but merely to ensure that they make more calls to generate more revenue for the cellular companies...," said Justice J D Kapoor, president of the Commission.

The direction came in response to a complaint by the Society of Catalysts, a consumer association that had accused Vodaphone Essar Mobile Service, which provides cellular service under the brand name Hutch, of violating the provisions of the Consumer Protection Act by organising contests that offered a car and gold coins as prizes.

The association alleged that Hutch, being a telecom company, was not supposed to organise such contests and the motive behind the act was to generate profits at the cost of the genuine interests of consumers.

It also furnished a survey conducted by it through personal and telephonic contacts which revealed that Hutch subscribers were willing to make unnecessary calls for a few minutes a day to be able to participate in the contest.

Estimating marginal adjustments in making calls to remain eligible for the contest, it said that on an average, extra talk time of 40 lakh minutes went towards the revenues of the company during the period of the contest.