DOJ gives warning to telcos about Unli Internet

The Department of Justice (DOJ) gives warning to the Philippine Telecommunications companies regarding their unlimited internet promo. This promo is misleading to the consumer because of the prevailing Fair Usage Policy (FUP).

DOJ regarding Unli Internet Promos

DOJ said that “Fair Use Policy” imposed by Internet service Provides (ISPs) on subscribers “is inconsistent” with the provisions of the Consumer Act, that penalizes deceptive packaging and misleading trade practices and advertisements.

DOJ stated that “The contention here is simple: ‘Unlimited’ means unlimited,” to telecommunications firms dated Dec. 9.

“While there is nothing wrong with advertisements and promotions, what is promised must be delivered. Our law requires not only truth in advertising, but also fairness in packaging and consistency in the provision of the service,” Justice Secretary Leila de Lima said in the statement.

Under the FUP, Internet connection is “throttled when usage reaches a certain volume of data bits,” the DOJ said. This slows down the Internet connection speed once a subscriber reaches the ISPs data cap for a specific range. Even the user was subscribe to an Unli Internet service.

A sample message from Globe Telecoms about FUP

Assistant Secretary Geronimo Sy, chief of the DOJ Office for Competition, refers Unli data to Unlimited rice or buffet concept. On his statement “Unlimited data is like the unlimited rice or buffet concept. Restaurants cannot offer an ‘eat all you can’ promo and when a customer eats more than the average person, actually stop [the customer] and not honor the commitment”

DOJ called on the Department of Trade and Industr (DTI) and the National Telecommunications Commission “to monitor and penalize non-compliant telcos.”

“The imposition of data throttling on unlimited Internet could also be regarded as a violation of the provisions prohibiting false, misleading or deceptive advertisements, hence deemed punishable in accordance with law,” the DOJ said.

Under criminal law, deceptive business practice is a violation of the Consumer Act and is punishable by a fine of between P500 and P20,000, and imprisonment of between three months and two years, or both. 

The imposition of data throttling on unlimited Internet could also be regarded as a violation of the provisions prohibiting false, misleading or deceptive advertisements, hence deemed punishable in accordance with law.

A violator may also face administrative fines of between P500 and P300,000, and an additional P1,000 fine for each day of continuing violation.

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