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50K Fine Following Texting Complaints

PhonepayPlus received 51 complaints regarding unsolicited reverse billed SMS messages from short code 84300. The majority of complainants reported receiving blank messages with no content or receiving no messages at all but a charge of £5 per message to their phone bill. However, some complainants reported the receipt of messages stating "Msg cannot be displayed. Sender 84300. Message centre +447785016005".

Complainants reported that when they contacted the information provider for the short code they were advised that the messages had been sent in error and that they would be refunded.

The following breaches of the PhonepayPlus Code of Practice 11th Edition (amended April 2008) were raised:

Paragraph 5.2 - Legality
Paragraph 5.4.1a - Fairness (Misleading)
Paragraph 5.4.1b - Fairness (Unfair Advantage)
Paragraph 5.7.1 - Pricing Information (Cost)
Paragraph 5.7.2 - Pricing Information (Prominence)
Paragraph 5.8 - Contact Information

The Tribunal upheld all of the above breaches other than a breach of paragraph 5.4.1b of the Code. The Tribunal considered the case to be serious, issued a formal reprimand and imposed a fine of £50,000. The Tribunal also ordered that claims for refunds are to be paid by the information provider for the full amount spent by users, except where there is good cause to believe that such claims are not valid.

For more information - visit http://www.phonepayplus.org.uk/consumers/adjudications/

News Date: 2009-02-24



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