In response to the Telecom Regulatory Authority of India’s (TRAI) recent proposal on transactional messaging, Hindustan Unilever (HUL) and the Fintech Association for Consumer Empowerment (FACE), a self-regulatory organisation recognised by the Reserve Bank of India, have urged the telecom regulator to reconsider its proposed rule changes.
The proposal, introduced in September, suggests that mobile users should have the option to opt out of transactional messages, including one-time passwords (OTPs) and other service-related notifications.
According to media reports, HUL has voiced concerns that the new rules could disrupt essential consumer communications, potentially compromising secured access to financial services and ecommerce platforms.
“While the new rules would provide consumers the choice to not receive such messages, including OTPs, it could have unintended consequences,” HUL stated in its communication to TRAI. “Accidentally opting out of critical transactional messages could lead to service disruptions, as users would be unable to access their accounts online.”
The FMCG giant highlighted the potential complications for consumers who may inadvertently opt out of transactional messages. “For a consumer who has mistakenly opted out, the proposed 90-day wait period before resuming services could lead to an unnecessary and prolonged interruption,” HUL added, recommending a shorter waiting period to avoid consumer inconvenience.
Echoing similar concerns, FACE emphasised that the opt-out option should be restricted to marketing or promotional messages. “Service-related communications, essential for delivering critical updates and notifications, should be exempt from this opt-out requirement,” FACE noted in its submission to TRAI. “Limiting opt-out options to purely promotional content will allow consumers to remain informed on critical matters while still controlling marketing communications.”
Currently, transactional messages — which include OTPs for banking and security verification — are exempt from opt-out provisions, as these messages are essential for account access and transaction security. However, TRAI’s new rules seek to introduce a mandatory opt-out mechanism, allowing users to opt out of any transactional communication after each call or message.
TRAI has noted that certain companies exploit the transactional messaging framework to send promotional content, undermining consumer choice in managing unwanted communications. To address this, TRAI’s proposal includes a mandatory opt-out option that would block further commercial communications from a sender for 90 days unless the consumer consents to resume them.
As the industry responds, both HUL and FACE advocate for a balanced approach that protects consumers from unsolicited promotional messages while safeguarding access to essential transactional communications.
