Out-Law / Your Daily Need-To-Know

The Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS), regulator of premium rate services in the UK, yesterday fined Leeds-based service provider Moby Monkey Ltd £50,000 and barred access to its “Mystery Award” service, following serious breaches of the ICSTIS Code of Practice by the company.

Moby Monkey sent hundreds of text messages to consumers urging them to call a premium rate number in order to claim a “mystery award”, which turned out to be holiday discount vouchers, with terms and conditions attached but undisclosed.

The service, which attracted more than 200 complaints from mobile users according to ICSTIS, was found to be “seriously misleading.” ICSTIS also adjudicated that it was promoted in an “inappropriate” manner, with many messages received by children or by some mobile users repeatedly.

Further, it was found that Moby Monkey took unfair advantage of consumers by falsely emphasising the need to call the service urgently.

Other breaches of the ICSTIS Code of Practice by the company included encouraging unauthorised use (because many corporate mobile users received the text messages), and unreasonable delay during the actual premium rate call.

ICSTIS director George Kidd pointed out that the use of promotional text messages has “many consumer benefits” when carried out in a “legitimate, responsible manner and in compliance with [the ICSTIS] Code of Practice.”

He added, however, that ICSTIS would not hesitate to take swift action against the “small minority” of service providers who “abuse public confidence.”

He said: “Our sanctions against Moby Monkey Ltd reflect the serious consumer harm caused by their service… and will act as a warning to the industry: misleading consumers in this way is totally unacceptable.”

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