Latest News Update 1 May 2008
PhonepayPlus, the phone-paid services regulator, today announced a
review of mobile premium services which in the UK are worth around £350
million annually, and include digital content such as music ringtones,
games and other downloads.
The spontaneity and simplicity of the phone-paid payment mechanism
allows millions of consumers to enjoy mobile services such as ringtones
and other downloads, competitions and TV voting. Most consumers use
these services without worry or aggravation.
However, new figures have led to increasing concerns about some
services:
* In the first three months of this year, PhonepayPlus received more
than 4,500 complaints related to mobile. This equates to 80% of all
complaints received, a 40% increase on mobile related complaints over a
similar period last year;
* In 2007, PhonepayPlus adjudicated on 33 mobile services with total
fines in excess of £360,000;
* By March 2008, PhonepayPlus had already adjudicated on 15 mobile
services, resulting in fines of £223,500. Today, PhonepayPlus published
adjudications on four more cases, resulting in fines of £68,000; and
* 45% of premium-rate numbers and short codes checked by consumers on
PhonepayPlus' website this year related to mobile services, as compared
to 24% this time last year. Of particular interest to PhonepayPlus at
this early stage are:
* Unsolicited promotions, especially text messages;
* Price transparency and the use of words that indicate content is
‘free'; and
* Subscription services (e.g. ringtones) and the ‘STOP' command
"There are clear rules when it comes to the promotion, content and
delivery of mobile phone paid services. We expect these rules to be
followed and any failings of compliance will be punished," said George
Kidd, Chief Executive of PhonepayPlus."PhonepayPlus will work with all
interested parties to understand the issues, examine the evidence and,
if necessary, propose solutions."