March 15th 2010, London
Our quarterly networking event is back once again - save the date!
Director Business Development
Competitive Package
UK

Regulator PhonepayPlus introduces prior permission and active confirmation to curb abuses
PhonepayPlus has confirmed the measures it's putting in place to protect consumers from rises in bad practice by direct-to-consumer mobile content providers in the UK.
Specifically, it is introducing to two new rules:
Prior permission - Content providers offering mobile subscription services charging over £4.50 in any given week or applying pay-per-page charges on the mobile internet must first apply for permission from PhonepayPlus;
Active confirmation - as part of the prior permission undertaking, any consumer joining a subscription service must first receive a free confirmation text message detailing the cost and conditions of the service. The consumer cannot be charged until they have confirmed their subscription by replying to that text.
PhonepayPlus hopes the rules will reverse a 108 per cent rise in consumer complaints about so-called phone-paid services (ringtones, games, interactive TV, competitions, news alerts, etc).
Advertisement
Also detailed in the statement are rules pertaining to:
- Price transparency: price information must be clearly displayed - as prominent as any other aspect of the promotion. Promotional material must not suggest any premium rate product or download is 'free';
- Promotional text messages: providers sending free promotional messages must inform recipients that the message is free and make clear how to opt out of receiving similar messages in the future;
- STOP: providers offering subscription services or sending promotional text messages must enable consumers to easily opt out of the service via the 'STOP' command. Any failure of this command already results in the service being immediately shut down while PhonepayPlus investigates;
- Marketing lists: companies that sell or otherwise trade third party marketing lists must provide evidence upon request by PhonepayPlus that recipients have agreed to receive promotional text messages for particular types of services;
- Chat: text-based chat services must not imply that users are exchanging messages with other individuals, or that customers will be able to meet people by using the service, unless this is the case.
Paul Whiteing, acting CEO of PhonepayPlus, said: "These new measures are targeted at a small number of providers who do not offer services to customers in a fair and straightforward way. Consumers should not need to work hard to understand the full price of any service.
"The guidelines are the result of intensive research in to the mobile market, and PhonepayPlus expects them to result in fewer complaints and greater confidence in the market."
To read more about PhonepayPlus's reasons for introducing the new rules, click here.
So if I wish to continue scamming people with unsolicited reverse charge text messages, I had better make sure that I steal no more than £4.50 per week from each of my victims ...... oh, and I wonder if Mr Whiteing ("These new measures are targeted at a small number of providers who do not offer services to customers in a fair and straightforward way") could supply a single URL of a website offering "free" ringtones which actually offers free ringtones?
PP+'s lamentable record in regulating PRS over many years is not just failing the consumer, it is holding back the development of products and services that could benefit everyone. Since nobody trusts any PRS firms to any of PP+'s repeated assurances that these firms are to be trusted, nobody will trust the genuinely useful and honest services when these appear.
The UK mobile content industry should be forced to use Payforit and rid the industry of the sort of abuses that we are still seeing.
The idea of a common register for all subscription services is an interesting one. The pioneers of open, customer care - Bango - has a common register for end users who want to opt out of mobile services powered by Bango's payments platform. They go to http://bango.net" onclick="window.open ( this.href ); return false;" class="comment_url" >http://bango.net on their phone and can see all the Bango powered subscription services they have signed up to and can easily cancel any if they want to. We are not suggesting this should be the central register - but it would nice if it was!
Sarah Keefe, Bango