Service Provider Dialogue Communications Limited and their Information Provider Consumer First Pty Limited have been fined £30,000 for providing a ‘Free Adult Videos’ service via mobile downloaded request.
Phonepayplus the regulator for the premium rate industry in the United KIngdom, found Dialogue Communications Limited in breach of the following regulations – Fairness (Misleading) – Pricing Information (Cost) – Pricing Information (Prominence)
The breaches related to the promotion of a WAP service called ‘Free Adult Videos’ in print media and through various WAP sites. The Tribunal considered the case to be serious, issued a formal reprimand, imposed a fine of £25,000 with a £15,000 uplift for breach history, ordered refunds to be paid to complainants and compliance advice to be sought and implemented.
Following the adjudication, the service provider submitted an application for a review of the case. The service provider’s application was accepted by the Chair of the Code Compliance Panel in accordance with paragraph 8.10.3 of the Code and leave was granted for the review Tribunal to reconsider the breach of paragraph 5.7.1 and the aggravating and mitigating factors in light of the service provider’s submissions. The service provider was granted permission to make informal representations to the Tribunal before its consideration of the case.
The service provider challenged the finding of a breach of paragraph 5.7.1, the Tribunal’s finding that its behaviour when responding to the investigation was wilfully misleading and therefore an aggravating factor, and the level of the fine imposed on it. The service provider also presented as a mitigating factor the fact that it had made changes to the WAP site following the Executive’s notification of problems in locating the free video and that these changes were made before an investigation was launched.
Having reviewed the case, the Tribunal upheld a breach of paragraph 5.7.1 of the Code, affirming the decision of the original Tribunal that the WAP site pricing was not clear and straightforward. The Tribunal decided that the service provider’s behaviour in responding to requests by the Executive under paragraph 8.3.3 of the Code was not wilfully misleading and that its missed deadlines were, in this instance, not an aggravating factor. The Tribunal upheld the original aggravating factor that the costs paid by individual consumers was high, having found that there were several instances of high costs paid by various consumers. The Tribunal did not consider that the mitigating factor presented by the service provider was relevant and affirmed the decision of the original Tribunal that there were no mitigating factors to consider.
The Tribunal considered the case to be serious, affirming the original Tribunal’s decision, but reduced the original fine of £25,000 to £15,000 following its decision to not uphold the aggravating factor of wilfully misleading conduct. The Tribunal retained the £15,000 uplift for breach history, making a total fine of £30,000. The Tribunal did not change any of the other breaches and sanctions upheld and imposed by the original Tribunal.
For more details of this case – please visit: http://www.phonepayplus.org.uk/consumers/adjudications/default.asp