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Regulator bans misleading premium-rate services

OUT-LAW News, 01/02/2006

Premium rate regulator ICSTIS has ordered premium-rate service providers to stop providing certain sexual entertainment and chat services that are billed by means of premium rate text messaging.

The targeted services are those that are accessed on non-premium rate landline numbers, often prefixed with 0871, where callers are not only charged for the call, but are also charged through expensive reverse-billed text messages (possibly including ‘flash’ SMS messages).

Providers have until 3rd February to stop offering these services, says ICSTIS. The watchdog warns that it will take immediate action under its emergency procedures against any operator that fails to comply.

The regulator is concerned that advertising for the service is misleading, and often does not make it clear what charges will be incurred when customers ring what appears to be a non-premium-rate number.

An investigation carried out by the regulator revealed that the targeted services were charging customers by sending numerous reverse-billed text messages to the caller. These were usually sent on connection but were sometimes sent during or following the call.

Moreover ‘flash’ messages – which appear directly on the recipient’s screen – are not generally stored in in-boxes, so when these were used as part of the charging process, no records were being kept, adding to consumer confusion.

ICSTIS is also concerned that the practice is bypassing access control and rating requirements that premium rate sexual entertainment services and chat services use designated prefixes, such as 090, or shortcodes, such as 69 or 89.

This is impacting on consumer understanding of these numbers as indicators of content and charging, says the regulator.

See: The ICSTIS Notice (2-page / 17KB PDF)

 

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