GCap fine record £1.1m by Ofcom for phone-in scam

GCap, the commercial radio group behind Capital 95.8 and Classic FM, has been fined a record £1.1 million by Ofcom, the media regulator, for manipulating phone-in quizzes to stop prizes from being won too quickly.

The media regulator has fined 30 local radio stations across GCap's One Network of stations in the highest-ever financial penalty imposed for the broadcast of radio content.

Ofcom said GCap was in breach of the Broadcasting Code following misconduct in a networked listener competition.

An investigation found that, on a number of occasions, programme makers deliberately put entrants who sent incorrect text messages on air in order to prevent the prize from being won too soon. The competition was called Secret Sound.

"As a result, those listeners who had paid to enter the competition on these occasions had no chance of winning," said Ofcom in a statement today.

In a statement, GCap said it took the ruling "extremely seriously".

"The new management and owners look forward to building a strong future for the commercial radio industry where the trust of its listeners and of its regulator is of the highest importance."

It added: "To that end the new management are already putting in place new measures to build on the already improved controls implemented at GCap and the company has not run premium rate competitions of this kind for the last 12 months."

Ofcom has also directed each of the 30 licensees to broadcast a summary of Ofcom's finding on two separate occasions.

Ofcom's penalty follows its recent record £5.675 million television fine to ITV for abusing premium rate phone services in viewer competitions.

Today's fine is not going to be taken lightly by GCap's new owners Global Radio, as it will severely dent profits at the group. Interim pre-tax profits at GCap fell to £5.6 million.

GCap was recently acquired by Global Radio, chaired by former ITV chief Charles Allen, and has faced numerous challenges, such as increasing pressure on radio advertising revenues, competition in the London market and the strength of the BBC.

source: timesonline.co.uk 26-06-2008

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