Ed Richards said that the increase in powers has become
necessary as television phone in scandals have rocked the industry
and shaken consumer trust in television.
In a letter to Culture, Media and Sport Secretary James Purnell,
Richards has said that the laws under which Ofcom operates are
inadequate to keep a check on modern broadcasting. He said that
regulation is divided into that for editorial and that for
advertising, but that phone-ins cross those boundaries.
"Transactional PRS [premium rate services] in Participation TV
on the scale we have seen in recent years were not envisaged when
the Act was drafted," he wrote. "They do not fit comfortably within
the existing frameworks. They arise in the main within programmes
rather than as advertising, but call for the sort of consumer
protection philosophy and measures that our statutory advertising
powers envisage."
Richards said that Ofcom has been able to define its powers in
such a way as to regulate all incidents to date, but that
developments may exceed its power to regulate them.
"We are concerned that, at some point, technology or service
innovation in Participation TV will reach the point where even the
most creative interpretation of our editorial regulatory powers
could not be brought to bear," he said. "To that end, we propose to
work with your officials over the coming months to develop
proposals which can address the issues more directly."
Richards admitted, though, that any change in the law would have
to wait for "a suitable legislative opportunity".
All four UK terrestrial broadcasters have been involved in
scandals over irregularities in television competitions, shows and
quizzes. Ofcom fined Channel 4 £1.5 million in December, the ITV
company GMTV £2 million and the BBC £50,000 in relation to phone in
scandals.
Premium rate telephone services have been regulated by
PhonepayPlus, previously ICSTIS, and content by Ofcom. Richards
acknowledged that that situation was inadequate and said that Ofcom
will now be able to direct PhonepayPlus and will be ultimately
accountable for all regulation.
"We have established a new relationship, whereby PhonepayPlus
will become an Agency of Ofcom to whom we can give direction," he
said. "I am confident that, should PRS issues overlap between Ofcom
and PhonepayPlus in future, we now have the mechanisms in place to
enable Ofcom demonstrably and effectively to take the clear lead
from the outset wherever this is appropriate."
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