PHONEPAYPLUS MOBILE REVIEW - ONE YEAR ON
Premium Rate Regulator PhonepayPlus, the phone-paid services regulator, today announces that complaint figures concerning mobile services are down by half one year on from the introduction of new rules that came about following its 2008 Mobile Review. The new regulation was introduced in response to a worrying rise in consumer complaints regarding premium rate mobile services which, on average, account for some 90% of all calls to PhonepayPlus’ Contact Centre.
PhonepayPlus is releasing these figures at the industry launch of its Annual Report in London today, where it will also announce that its Chairman, Sir Alistair Graham, has accepted an invitation to stay in post for a further three years.
PhonepayPlus’ complaint figures show that:
- Total complaints regarding Premium Rate mobile services are down 57% from June 2008 compared to May 2009 (2,125 vs 919)
- Consumer complaints regarding mobile subscription services have almost halved since the introduction of the new rules (1,207 vs 651)
- Consumer complaints about unsolicited text messages are down by 85% from the first half of 2008/9 compared to the second half (1,538 vs 230)
Commenting, PhonepayPlus Chief Executive, Paul Whiteing, said: “These results show that we are heading in the right direction and sorting the good from the bad in mobile services. It is early days, and we are still analysing the various impacts on our complaint numbers, but these are an encouraging set of results that appear to demonstrate the effectiveness of the new rules, as supported by responsible providers in the sector.Â
He continued: “However we are not complacent and remain vigilant for any new opportunistic activity that may result in consumer harm. This risk is especially acute since, with a country in the midst of recession, we expect the PRS industry to be attractive to unscrupulous operators looking for ways to make a fast profit. We remain committed to being proactive in preventing non-compliant services from making it to market.”
Mobile Review: the rules
PhonepayPlus’ Mobile Review set out new rules for the mobile phone-paid services sector. It stated that services could not be advertised as free unless they were free from any associated charges; set new rules around trading of third party marketing lists; and introduced a prior permissions scheme for Premium SMS subscription services costing upwards of £4.50 in any given week. The Review also reinforced PhonepayPlus’ zero tolerance of any failure of the ‘STOP’ command for opting out of receiving unwanted contact by text message.
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Premium Rate Regulator PhonePayPlus has annouced the first steps on reimburising users who paid £7200 for permission to run their own live services will be seing a refund soon.
The Trustees are pleased to announce that they have resolved to commence the winding up of the Fund and that the effective date of such commencement is Friday 22 May 2009 (the “Cut-Off Date”). All contributors eligible as at the Cut-Off Date will be entitled to participate in the distribution of monies presently held in the Fund. We will be updating our records by undertaking a final search, effective as at the Cut-Off Date, to determine the list of eligible contributors.Â
Following this, we will be writing to all eligible Contributors to confirm details of the winding up process and thus to make a start on the distribution of monies. Our latest estimate is that there will be a maximum of 75 eligible contributors to the Premium Rate Services fund entitled to share in about £540,000 giving approximately £7,200 available to each eligible contributor. There were originally 96 contributors but a number of them have ceased to exist and a number of them are individuals who we are currently tracing as they have ceased to provide services, but have not notified the Trustees. Please note that this amount is not guaranteed but is our estimate.Â
However, over the past few months we have been working to resolve a number of legal and technical issues connected to the proposed winding up. The final outcome is that the Trustees consider it reasonable and prudent to retain a certain amount of monies to cover the risks of any contributor seeking to challenge the winding-up and/or the distribution of its monies or otherwise. The Trustees wish to keep to a minimum the amount retained and therefore if all eligible contributors successfully participate then the risk of any challenge is minimized and thus the amount retained can be minimized and a further distribution made in due course. Â
Accordingly, the Trustees propose to make an initial distribution of £6,500 to each of the potential 75 eligible contributors with the balance being distributed as and when possible. All correspondence will be sent, in the case of companies, to the registered office address shown at Companies House or equivalent for foreign companies and, in the case of individuals, to their last known address notified to us. If you wish to send us your current address, then please do by calling: 0870 762 7925 This is a postive move by the Premium Rate Regulator and should give consumers more choice on who they can choose to be their Premium Phone Line Provider.
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