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Trai Mandates Fresh Digital Consent for Marketing Messages from Banks and Businesses

BNE News Desk


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Guwahti: Banks, financial institutions, insurance companies, trading companies, business entities, real estate companies, etc., to take fresh explicit consent from telecom consumers digitally for sending any commercial or marketing messages.

This has been directed by the Telecom Regulatory Authority of India (Trai). The regulator said the earlier consent given by users stands null and void with the implementation of a new digital consent acquisition (DCA) facility for creating a unified platform and process to register customers’ consent digitally across all Access Service Providers and Principal Entities.

DCA is a system that asks for, seeks, and receives permission online before sharing someone else's images, videos, posts, or text messages online is an example of digital consent. 

TRAI in its endeavour to curb the menace of spams through Unsolicited Commercial Communications (UCC) has taken various measures in recent past. 

With the implementation of the DCA system, Trai has declared that any previously acquired consents through alternative means are now null and void. All Principal Entities (PEs) are instructed to obtain fresh consents solely through digital means. This move is aimed at creating a unified platform and process to register customers' consent digitally across all Access Service Providers and Principal Entities.

To facilitate this process, a common short code, 127xxx, will be used for sending consent-seeking messages, with clear information regarding the purpose, scope of consent, and the Principal Entity or brand name. Only whitelisted URLs, APKs, OTT links, call-back numbers, and other approved communication methods will be allowed in these messages. Additionally, the consent acquisition confirmation message will include details about how customers can revoke their consent.

Trai has also directed telecom companies to develop SMS and online facilities for customers to express their unwillingness to receive consent-seeking messages from any Principal Entity.

This directive follows Trai's earlier move to shift all commercial messaging, including one-time passwords, promotional messages, and account balance updates, to a Distributed Ledger Technology (DLT) platform. To comply with this regulation, businesses sending commercial texts had to register themselves, along with their sender codes and message templates, on the blockchain-based DLT system, ensuring that only verified and registered entities could send messages to customers.

"It is specifically highlighted that after implementing DCA, the existing consents, acquired through alternative means, shall be rendered null and void and fresh consents will have to be sought by all PES (principal entities) through digital means only," Trai said in a statement.

In response to Trai's directive, all businesses and Principal Entities are urged to take "urgent necessary steps" to onboard the DCA system within the prescribed timelines set by the regulator, as Trai continues its efforts to protect telecom consumers from unwanted marketing messages and spam.

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BNE News Desk