Due to lack of transparency: Erdan fines cellular companies 2.2 million shekels

Haredim 10
May 11, 2014   
The IQO Tech affair: Thousands of consumers, mainly minors, received collection demands from the company totaling thousands of shekels for content services they supposedly consumed in 2006-2007 without being informed of the details of the service • The companies Cellcom, Pelephone, and Partner were fined more than half a million shekels • Minister Erdan: "We will not allow money to be collected from consumers in ways that are not transparent""
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The war on cellular networks: Communications Minister Gilad Erdan ordered the cellular companies Pelephone, Partner, Cellcom, and Hot Mobile to be fined a total of approximately 2.2 million shekels due to the IQOtech affair, in which thousands of Israelis consumed renewable content without their knowledge and were required to pay for it.

The Mako website reports that the Ministry of Communications claims that the companies did not inform the subscriber via text message at the time of registration for content services about the details of the service: what the service is, what the service rates are, and how to contact the company in the event that they wish to disconnect from the service.

""We will not allow money to be collected from the consumer in ways that are not transparent, but only when it is clear beyond a doubt that the consumer ordered the service with full awareness," said Erdan. As part of the financial sanctions, Cellcom was required to pay 748,090 shekels, Partner 642,670 shekels, Pelephone 599,830 shekels and Hot Mobile 173,530 shekels.

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The IQOTech affair has been troubling thousands of consumers for several months now, who have received collection demands from the company totaling thousands of shekels for content services they supposedly consumed in 2006-2007, most of them as minors. The letters are accompanied by threats of lawsuits from various law firms responsible for the collection - initially through about 20 law firms, most of which later withdrew from handling the matter.

The affair was brought to the attention of, among others, the Ministry of Communications and the Ministry of Justice, which published various clarifications regarding the company and the problems in its conduct, and the affair was even discussed in the Knesset's Economics Committee.


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