Premium rate regulator consults on new Code of Practice

The document also takes account of recommendations made last year by Ofcom, the regulator for the UK’s communications industries, in a review of the premium rate 090 telephone service industry.

As well as proposing specific amendments to the Code, ICSTIS is seeking comments on the scope and application of its regulation, particularly in respect of the appropriateness of regulation for new and developing forms of content.

The key proposals are:

• implementation of the relevant recommendations from the Ofcom Review;
• amending the definition of network operators so that they can be quickly and readily identified – which will ensure that they can support ICSTIS in its work by carrying out due diligence on and provide accurate information about their service providers, bar access to services where necessary and withhold revenue payments when requested;
• the ability to impose sanctions on network operators where they fail to meet their obligations under the Code;
• specific, tailored provisions for directory enquiry services, subscription services and SMS chat services;
• more specific and more wide-ranging requirements governing the provision of price warnings for premium rate services advertised on television; and
• stronger rules covering refunds for complainants.

“We are seeing a whole host of new and innovative services but there is a danger that some of these services threaten new forms of consumer harm,” said ICSTIS Director George Kidd. “For this reason, the new Code features safeguards to ensure consumers are protected at all times. It contains, for example, specific rules for premium rate SMS services, internet services and directory enquiry services.”

“We will also have the power to impose sanctions on phone companies where they fail to meet their obligations under the new Code,” he added. “This is a new world and we will have to work with the industry to make sure that they are aware of their obligations and how to meet them."

The consultation will run until 23rd September 2005.