ICSTIS, the industry-funded regulatory body for all premium rate charged telecommunications services, regulates these services in their entirety - their content, promotion and overall operation.
It investigates complaints and has the power to fine companies and bar access to services if its Code of Conduct is breached. It can also bar individuals behind a company from running any other premium rate services under any company name on any telephone network for a defined period.
The Activity Report shows how premium rate charging is now being used across all communications platforms for an ever-growing range of information and entertainment services, generating revenue of almost £1 billion last year.
According to ICSTIS, premium rate charging is now just as likely to be used for fund-raising purposes, playing interactive TV games, downloading mobile ringtones or receiving news alerts as it is for entering competitions or casting votes.
However, complaints about services increased by 43 % in 2002 to 11,572, the highest level in the regulator's 17-year history. According to ICSTIS, the main reason for the surge in complaints has been the rapid growth of unsolicited marketing.
"New forms of spam marketing - most obviously text messaging, e-mails and faxes - allow promotions to be sent to millions of people overnight," explained ICSTIS Chairman Sir Peter North.
He continued: "This so-called 'marketing' is often indiscriminate, and the content is too often deceptive and inappropriate to those it reaches. I have no doubt that the number of complaints we receive is just the tip of an iceberg of dissatisfaction."
The regulator's statistics back this up. Complaints about services promoted by text message increased almost eight-fold in 2002 to 1,210. Typical concerns included the unsolicited nature of messages, the misleading descriptions of what was being offered, and pricing information which was either inaccurate or completely lacking.
In 36 such cases investigated by ICSTIS last year, fines of up to £50,000 were imposed on the companies responsible and access was barred on 15 occasions.
Unsolicited e-mail promotions also caused serious consumer harm throughout the year. Almost 1,200 complaints were received from members of the public about a series of spam e-mails that tricked them into unknowingly activating a premium rate internet dialler. The individual behind the companies responsible was subsequently barred from operating any premium rate services for three years.
In several other cases involving premium rate internet access, ICSTIS' ability to deal with service providers around the globe was proven by its tough action against companies based in Germany, Spain, the US and the Far East.
The Report also reveals that the regulator's free helpline dealt with almost 110,000 calls in 2002. Figures for the first few months of 2003 suggest that the system is now handling around 20,000 calls each month - nearly a quarter of a million calls a year. Advice was given, among other things, on premium rate charging on the internet and on digital television - two areas of widespread consumer misunderstanding that resulted in thousands of enquiries to the helpline each month.
"We know from experience that there is real potential for harm when the pace of technological development outstrips consumer understanding," said Sir Peter North. "There are individuals who view the introduction of new technologies purely as an invitation to mislead and deceive.
"New regulation on its own, however, cannot be the simplistic response. Much of the answer lies in informing, educating and empowering consumers so that they become less susceptible to harm. This goal is central to our plans for 2003 and we have a number of initiatives planned. By working with industry, consumer and other groups to offer information and guidance as well as protection, we will continue to move decisively towards our vision that all consumers can use premium rate services with absolute confidence."
The full report is available at www.icstis.org.uk/icstis2002/pdf/ACTIVITY_2002.PDF