Mobile downloads 'to be probed

UK mobile phone premium-rate services, such as ringtones, downloads and games, is to be investigated, the industry regulator PhonepayPlus has announced.

The probe comes after rising complaints about digital content provided by the £350m-a-year premium-rate industry.

Some consumers have been hit with bills they did not expect after downloading pictures or tunes on their mobile.

The regulator, which was previously known as Icstis, said there has been a 40% rise in gripes already this year.

'Consumer harm'

The marketing of digital content for mobile phones has become big business.

PhonepayPlus said that millions of people made the most of ringtones, games, competition and voting by text message without any problems.

But in the first three months of the year it had received more than 4,500 complaints about mobile content. This was 80% of all complaints to the regulator about services paid for by telephone, and a 40% increase compared with the same period last year.

"There are clear rules when it comes to the promotion, content and delivery of mobile phone paid services," said George Kidd, PhonepayPlus chief executive.

"We expect these rules to be followed and any failings of compliance will be punished."

Code of practice

The regulator aims to ensure that service providers keep to a code of practice that outlines clear and accurate pricing, honest advertising and appropriate targeting of promotions.

POWERS HELD BY PHONEPAYPLUS

Businesses breaking the rules can be blocked from using premium-rate numbers, from which they make money.

The regulator handed out fines of more than £360,000 in 2007 and has already imposed penalties of £291,500 this year.

It can fine any business breaking the code by up to £250,000 per breach. It can also ban named individuals from operating services in an attempt to stop barred companies simply changing their company name and starting again.

Sufficient powers?

Simon Bates, of PhonepayPlus, said that the review would establish whether the regulator's powers were rigorous enough.

The review, the results of which should be published in July, will look at ways of dealing with unsolicited text message promotions, price transparency - especially use of the word "free" - and subscription to services such as ringtones.

The situation is particularly pertinent as youngsters are among the heaviest users of these services.

In one adjudication the day before the review was announced, a service provider was fined £7,000 for a "serious" breach of the code of practice when downloads were advertised in a children's magazine.

The advert was titled "Free 4U" but game downloads cost up to £4.50 each, the small print revealed. The provider said that some free items were, in fact, available.

source: bbc.co.uk 01-05-2008