MEF Updates Brazilian Code of Practice

MEF has launched the second version of its Unified Code of Practice for mobile content subscription services in Brazil.

The MEF Unified Code of Practice sets the standard for regulatory best practice that mobile content aggregators must follow in order to offer Value-added Services (VAS) in partnership with Brazilian carriers. The first version of the Code, launched in late 2010, has served as the basis for approval of new VAS projects by all four Brazilian carriers, with the goal of improving mobile content services and increasing consumer confidence.

Rules and new items included in the second version of the Code include a compulsory double opt-in for content subscription services, via SMS, Website, or WAP; suggested phraseology for subscription services; clear prescription on information regarding pricing, timing, cancelation and terms & conditions; introduction of billing reminders via SMS for subscribers; an anti-piracy article regarding use of advertising on sites that offer pirated content; and definition and standardization of minimum penalties for non-compliance. It will be officially implemented by all carriers in the coming weeks and, says MEF, represents a major step towards self-regulation of the market. In addition to the major carriers, the new Code of Practice and industry self-regulation initiative is also supported by Anatel, the Brazilian Telecom Regulatory Agency.

With the Unified Code, both rules and the penalties that could be applied for non-compliance are unified. This means that aggregators can deliver streamlined cross-network services instead of four bespoke products; carriers can more easily identify possible breaches; and end users have access to a higher quality service.

“The launch of the second version of the Unified Code represents a significant milestone for MEF LatAm and the VAS industry, and will be of great benefit to the entire mobile ecosystem in the region,” says MEF executive director, Rimma Perelmuter. “MEF will continue its collaboration with the local carriers and regulators to ensure that the code remains robust in a region defined by its fast paced rate of change, and to safeguard the future of the VAS industry for consumers and merchants alike.”

The next phase of MEF’s initiative will focus on monitoring and certification. The Code itself will have periodic reviews with the operators and content aggregators to ensure on-going relevance with developments in mobile content and commerce.

The code is available for MEF members to download in Portugese and English from the MEF website.