The announcement comes in the wake of a public outcry over rogue
diallers – software that installs a default dial-up number onto an
unwitting person's computer to call a premium rate number,
resulting in an unexpectedly expensive call every time the computer
connects to the internet.
Such is the volume of complaints pouring into industry watchdog
the Independent Commission for the Supervision of Standards of
Telephone Information Services (ICSTIS) that earlier this month the
Conservative MP for NW Hants, Sir George Young, described the
regulator as being in a state of "meltdown".
The new licensing arrangements announced yesterday mean that
services will have to obtain the prior permission of the regulator
before they are allowed to operate, and that no telephone network
will be able to give out premium rate numbers to companies offering
such services until they see written confirmation from ICSTIS that
permission has been granted.
George Kidd, Director of ICSTIS, confirmed that permission would
only be granted to those companies satisfying stringent
requirements.
"These are currently being finalised," he said, "but will cover
key areas such as clear terms and conditions, user consent,
information about how to delete diallers, and responsibility for
customer refunds and ICSTIS fines."
Kidd called on others in the industry to play their part – in
particular phone companies, who should be able to identify
suspicious call patterns and take action to prevent their customers
running up huge bills.
Networks that give out premium rate numbers also have a role to
play in properly checking the companies involved, and the speed at
which money is passed on to them, said Kidd.
"We will not hesitate to report any networks that perpetuate
consumer harm to Ofcom and are confident that they will take swift,
tough action against them. Finally, we will continue to work with
the police and other enforcement agencies to ensure that those
responsible for defrauding consumers face the full consequences of
their actions," he warned.
