New Direction by TRAI to Reinforce TCCCPR Compliance

Introduction

In a decisive move to combat the ongoing issue of unsolicited commercial communications and fraudulent activities conducted by spammers, the Telecom Regulatory Authority of India (TRAI) has issued directions to access service providers on 13 August 2024 (Directions). The Directions underscore the importance of strict compliance with requirements under the Telecom Commercial Communications Customer Preference Regulations, 2018 (TCCCPR), with a particular focus on the blacklisting provisions for unregistered senders or telemarketers.

Introduced in 2018, the TCCCPR envisaged to establish a robust framework aimed at curbing spam phone calls and SMSs, utilizing a Distributed Ledger Technology (DLT)-based system to manage consumer consent and enforce penalties on violators. Under the TCCCPR, senders/ principal entities and telemarketers are required to carry out the prescribed regulatory pre-checks before sending or making any commercial communication. Despite these regulations, the persistence of unsolicited communications and various fraudulent activities and scams conducted through such communications has necessitated stronger enforcement measures.

Growing concerns around unsolicited communication and coordinated efforts

The rising tide of unwarranted promotional and spam calls, particularly from unregistered telemarketers in India exploiting telecom resources has prompted coordinated actions between TRAI and the Department of Telecommunications (DoT) as such activities not only infringes on consumer privacy but also undermines the credibility of legitimate businesses that rely on telecommunication channels for their business operations. Earlier this year, the DoT took action against telemarketers involved in fraudulent SMS activities, suspending the operations of the implicated entities.

This latest direction from TRAI is a continuation of these efforts, reflecting the regulatory bodies’ growing concern over the persistent issue of spam and fraud in the telecommunications sector. Notably, in 2023 alone, there were over 12 lakh complaints lodged against ‘unregistered telemarketers’ (UTMs), and the first half of 2024 saw more than 7.9 lakh complaints. These staggering figures underline the ongoing challenge and the need for stringent enforcement.

Key Provisions of the New Direction:

Comments

The intent behind the Directions is to curb unwarranted promotional communication, and not to eliminate promotional communication altogether. Businesses can continue to send promotional communications, but only with the explicit consent of consumers and ensuring all regulatory prechecks are conducted. In this regard, relevant steps will have to be taken at the backend by the access service providers to ensure compliance. This shift emphasizes a consumer-first approach, ensuring that promotional content is welcome and relevant rather than intrusive.

These measures, along with the DoT’s revision of the numbering system in May 2024 to distinguish between transactional/service calls and promotional calls, highlight the government’s proactive stance in tackling unwanted promotional communications and spam calls. The Directive’s focus on disconnecting telecom resources and blacklisting violators could significantly disrupt businesses who are not registered with the access service providers and rely on telemarketing or promotional calls for customer outreach.

Furthermore, with the Digital Personal Data Protection Act, 2023 expected to come into force soon, business entities will be under an additional obligation to obtain explicit consent before processing personal data, including name, contact information used for promotional communications. This dual layer of regulation reinforces the need for compliance with the data privacy principles and consumer protection in an increasingly digital landscape.

• Harsh Walia (Partner), Shobhit Chandra (Counsel), Rupendra Gautam (Senior Associate) & Vanshika Lal (Associate)

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