Termination of Monopolistic Contract at MPKJ

23 02 2009

The general rule pertaining to adverisements in all PBTs is generally spelt out by the respective By-Laws. The usual practice is that one has to submit an application, pay the required deposit and fee (which varies from PBT to PBT), put up the advertisement as and where approved and then remove it upon the expiry period, failing which the deposit is forfeited.There is no need to engage the services of an agent.
Despite of that, the previous council in MPKj in December 2007 privatised all activities relating to advertisements to one company, creating a monopoly. With that, all persons (individuals, companies, adverisers, etc) who wish to advertise their products or services must use the services of this Company. Now in addition to the normal fees, users must now pay this Company RM18 per banner as charges to put up the banner. Users have no choice. They cannot put up the banners by themselves but must use this Company. In addition, this Company often rejected banners not designed by them, forcing users to use their services to design and print, which can cost users an average of RM400.
DAP MPKj local councillors came to know about this in August last year and since then have been attempting to revoke the agreement. The State Government, vide YB Ronnie Liu’s office, also strongly criticised MPKj for entering into monopolistic agreements. Initially we had some trouble due to weakness in the agreement pertaining to termination. However we finally managed to rescind this agreement. The notice has served and now users deal direct with MPKj.
The reason why I wish to bring this to your attention is to alert of such practices. I am not certain about the practice at your respective PBTs but it is worth checking to find. Do not limit yourself to just advertising.




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