The fines were announced on Friday by the Independent
Committee for the Supervision of Standards of Telephone Information
Services, or ICSTIS, the industry-funded regulatory body for all
premium rate charged telecommunications services.
ICSTIS took emergency action to close down a total of 16
services. In a number of cases it froze some or all of the income
generated before it could be paid out by the phone companies
involved.
ICSTIS has also asked relevant statutory bodies to act under
their respective powers. The use of automated calling equipment
without a consumer's prior consent is unlawful. This, together with
issues of misleading marketing, has been passed to the Information
Commissioner's Office and the Office of Fair Trading.
ICSTIS has also notified Ofcom over the role of one telephone
company, Allied Telecommunications, given its involvement in all 16
services.
ICSTIS Director George Kidd said:
"These services are simply unacceptable. They are intrusive,
misleading and almost certainly illegal. We have acted fast to stop
the harm but the problem has not gone away. Over Easter we again
saw a spate of this junk marketing. When this goes further, into
illegality and fraud the proper authorities must also act."
The cases highlight the need for changes in the regulation of
Premium Rate Services, says ICSTIS. The recent Ofcom report
reviewing the regulation of Premium rate Services is the framework
for improved regulation, it says.
Two changes are key priorities: increasing ICSTIS' ability to
impose fines which match the offences committed; and slowing the
payment processes to ensure rogues cannot collect their ill-gotten
gains. ICSTIS, the DTI and Ofcom expect this month to announce
emergency action on slowing payment cycles.
