OFCOM: Approval of the PhonepayPlus Code of Practice

OFCOM have today published a consultation document seeking comments on whether Ofcom should approve, under section 121 of the Communications Act 2003, a new edition of the PhonepayPlus Code of Practice for regulating Premium Rate Services.

Premium rate services (PRS) typically offer some form of content, product or service that is charged to users' phone bills. They can offer information and entertainment services via fixed or mobile phone, fax, PC or interactive digital TV. Regulation of PRS is designed to ensure that consumers can use these services with confidence and have access to effective redress when they encounter problems.


The most significant changes from the previous Code of Practice are:

1. those parties that control the operation/content of a PRS will now be held directly responsible by PhonepayPlus for complying with the Code, while providers offering intermediary services will face new obligations to undertake due diligence on their clients and to monitor the risks they may pose to consumers;
2. before operating in the market PRS providers will need to register with PhonepayPlus (PhonepayPlus is proposing to exempt directory enquiries (DQ) and 0871 providers from this obligation);
3. to facilitate effective investigations, an existing requirement for certain providers to withhold payments to their clients for 30 days after a PRS transaction has taken place will be extended to other providers in the PRS value chain;
4. PhonepayPlus is proposing more informal investigation procedures for cases with minimal consumer harm as well as introducing new sanctions that can be imposed by its Tribunal (including automatic refunds for consumers);
5. PRS providers will be required to have effective complaints procedures in place; and
6. PRS providers will need to take steps to identify excessive usage of a service to minimise cases of 'bill shock'.

 For coplete details please see http://www.ofcom.org.uk/consult/condocs/ppp/