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
