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First action under UK's E-Commerce Regulations

OUT-LAW News, 23/10/2002

The UK premium rate services regulator ICSTIS has fined and barred two adult web sites based in other EU Member States. ICSTIS is the first UK content regulator to take action under the this year's E-Commerce Regulations, which implemented the E-Commerce Directive in UK law.

The two cases involved web site content promoted by two different service providers, Spanish-based Greenock and German-based Premium Call GmbH.

The web sites' promotional material repeatedly referred to sexual acts involving children, while the dialler software used to access the sites at premium rate charges of £1.50 per minute downloaded automatically without users' knowledge. ICSTIS said it appeared to be deliberately designed to mislead users into running up huge phone bills.

ICSTIS imposed a fine of £75,000 on Greenock and a fine of £50,000 on Premium Call GmbH, while access to both services was barred for two years. Both companies were also instructed to offer redress to those who complained to ICSTIS.

Under the E-Commerce Directive, ICSTIS is authorised, in cases of "emergency" involving matters of public policy such as the protection of minors and consumers, to take direct action against service providers based in other EU Member States.

In both cases, ICSTIS' direct action was notified to the European Commission and the UK Department of Trade and Industry, as required by the Directive. Both cases were also reported to the National Hi-Tech Crime Unit.

ICSTIS chairman Sir Peter North said: "The sanctions imposed... serve as a warning to others that we will not hesitate to take decisive action to protect UK consumers from such abuse."

 

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