PhonepayPlus publishes letter pressing the government to carry out a review.
The letter was counter-signed by telco and premium rare industry trade bodies, AIME, MEF and UKCTA.
Micropayments are fast becoming a potential nightmare for the telco regulator, threatening to repeat the ringtone scandals of five years ago.
Abuses vary from the straightforward problem of children ransacking their parents credit cards without controls to the more criminal practice of tricking the user into a process that ends up charging them invisible payments.
A research report by Analysys Mason for PhonepayPlus, recommends a code of practice to regulate the provision of, and payment for, low-value digital goods and services, which applies across multiple platforms.
The letter to the Secretary of State also remind the government that clear rules are needed to encourage investment in the digital content sector – a key aim of the Government’s review.
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Paul Whiteing, PhonepayPlus’ CEO, said: “Consumers are increasingly making use of micropayments to access content, so we believe this Government review is timely.
"The current legislation is almost ten years old – and PRS now has to compete with a myriad of other micropayment mechanisms, with different rules and regulations governing each.
“Both industry and regulator therefore urge the Government to take this opportunity to review the legislative and regulatory framework for micropayments, to both encourage innovation and investment and maintain and build consumer confidence in the market.”
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