Out-Law News 1 min. read

Phone prize scammers fined £1.3 million


Companies that used automated equipment to dial home phones across the UK with pre-recorded messages, prompting the public to dial premium-rate numbers on the false promise that they had won money or holidays, have been fined £1.3 million.

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.

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