It is time to break the Touch N Go Monopoly. Touch N Go continues to serve consumers with shoddy products and poor services. It can continue to make profits despite providing poor products and services because it is a monopoly. There are no competitors. Consumers do not have a choice. Realising the unfair and weak position of consumers in relation to the monopolistic behaviour of Touch N Go, FOMCA on the 30 October 2018 filed a complaint with the Malaysian Competition Commission to investigate and more importantly break the monopoly. To date, Touch N Go continues its monopolistic behaviour to the determinant of consumers’ wellbeing.
It is way past time to break the monopoly and liberalise the market.
The time has come for the government to relook at the monopoly being enjoyed by Touch N Go and its impact on consumer protection and consumer wellbeing. And most importantly act on it.
As a monopoly, FOMCA strongly feels that consumers are getting a shoddy deal paying higher prices for lower quality of services. Some of the complaints received from consumers include:
• Instead of paying less when you use a cash card, you have to pay a surcharge up to 10%. Thus although you have already made a pre-payment, at the point of use you still have to pay an additional 10%;
• In some parking lots, only Touch N Go is accepted;
• You need to pay an additional charge to reload/top-up your card;
• Consumers have complained of Smart Tag that does not work at the Toll gate showing “No Smart Tag” sign – this is certainly embarrassing as well as an obstruction to other drivers;
• Consumers have complained about use of the Touch N Go card at the Komuter stations;
• Charging dormant fees for non-use of the card;
• Smart Tag Centres being available on only very limited centres for repair or purchase;
• Power to deduct pre-paid monies without consent of the card holders.
• Values cannot be added or in other words you cannot “top up” your card at the Toll unless your balance is extremely low.
FOMCA feel that it is time for the government to de-regulate the industry to ensure lower prices and better quality of services for consumers. The monopoly being enjoyed by Touch N Go is resulting in consumers being taken for granted as consumers have no alternatives. With better competition, the companies in the industry will be forced to provide lower prices and better quality of services. FOMCA strongly believes that a competitive market will ensure better consumer protection and enhanced well-being.