In response to the prevalence of instant messaging services and account theft or account deleted causing consumer disputes, the Ministry of Economic Affairs (MOEA) has drafted relevant regulations and announced the “Mandatory Provisions and Prohibitory Provisions to Be Included in the Standard Form Contract for Instant Messaging Application Services” on Sept. 25, to become effective on May 1, 2018.
The standard form contract regulations feature clear rules concerning common consumer disputes, including the disappearance of paid-for stickers, account theft and termination; for example, alert mechanisms need to be in place in order to address the problem of accidental sticker and account deletions. If accounts are deleted as a result of account migration or security breaches, consumers can request service providers to assist with restoring their accounts, prepayments, and/or paid-for items, i.e. stickers.
Apart from the obligation to clearly list their contact information, i.e. hotlines and email addresses, as well as information pertaining to governing law and jurisdiction, the regulations also require the service providers to disclose adequately the consumption information, as well as requiring service providers to place relevant funds in escrow, fulfilling responsibilities in relation to security and personal data protection. Service providers are prohibited from stipulating clauses that allow use of personal information outside the necessary scope and from unilaterally altering their terms and conditions. On the other hand, the regulations also state that if accounts are used for money laundering, fraud and/or other criminal activities, service providers may terminate their agreements or suspend their services.
The MOEA indicates that the regulations apply to both foreign and domestic businesses that provide instant messaging services in Taiwan, and has conducted multiple rounds of communication with major service providers in order to assist them adapting to the latest regulations and ensure service providers having to align their agreements with the said regulations. The MOEA has decided to postpone the effective date to May 1, 2018, and once the regulations come into effect, the service providers will be requested to take remedial action within a limited timeframe if they are found to be in violation of the regulations.
The MOEA reminds the public to report these cases to local governments or the competent authorities if service providers are in violation of the regulations or consumer rights, and also hope to establish order in the instant messaging sector to reduce consumer disputes by the new regulations.