Adult Sex Exchange Fined £50,000 By UK Telecom Regulators

Following further investigation, PhonepayPlus raised the following potential breaches under the Code:

• Paragraph 3.3.3 – Adequate technical quality
• Paragraph 5.2 – Legality
• Paragraph 5.4.1a – Fairness (Misleading)
• Paragraph 5.7.1 – General pricing provision (Cost)
• Paragraph 5.8 – Contact Information
• Paragraph 5.11b – Use of the word ‘free’
• Paragraph 7.3.2c – Virtual chat services – group text conditions
• Paragraph 7.3.3b – Informing user of cost after £10 – require positive response to continue

The Tribunal did not uphold the alleged breach under paragraph 7.3.2c but upheld the remainder. The revenue generated by the service fell within Band 2 (£250,000-£500,000).The Tribunal considered the case to be serious, issued a Formal Reprimand and imposed a fine of £50,000 (comprising £40,000 in respect of the upheld breaches with an uplift of £10,000  in respect of breach history). The Tribunal ordered the Information Provider to seek compliance advice in respect of this and all similar virtual chat services (whether or not these incorporated a contact or dating element) within two weeks of the publication of the Tribunal’s decision, such advice to be implemented to the satisfaction of the Executive within two weeks of it being given. The Tribunal also ordered that claims for refunds are to be paid by the Information Provider for the full amount spent by complainants, except where there is good cause to believe that such claims are not valid.

Administrative Costs awarded: 100%