RegTel drafts new rules for premium services

05-02-2008

by Stephen Errity

A reduction in the maximum spending limits for premium rate phone services is among the proposals contained in RegTel's new draft code of practice.

Under the premium rate regulator's new code, published Tuesday, the maximum spend on 'chat and dating' calls would be reduced from EUR60 to EUR40, while the maximum for 'live' services would go from EUR90 to EUR60. Operators of such services would also have to warn customers when they reach spending thresholds of EUR20 and EUR30 respectively.

Tom Higgins, CEO of Irish Psychics live, was quoted in the Irish Independent on Tuesday as saying: "We've been very unhappy with the code of practice for some time. Our price warning is given at 12 minutes (when EUR28.80 has been spent) and at 24 minutes (EUR57.60)."

Callers to psychic, tarot card and horoscope lines would also have to be informed that such services are for entertainment purposes only. The code also specifies that competitions must not be used to sign consumers up for subscription services, something that has long been a bone of contention for the organisers of such competitions. A revision of the 'opting out' procedure for premium rate services is also proposed, with customers being able to text 'STOP' to cancel subscriptions to any and all services.

According to reports, Higgins also said he would not accept 'STOP' as an opt-out code, because it would not specify whether people wanted to withdraw from receiving information on promotions or cancel their subscription to weather forecasts and other services. Regtel says it will not respond to these comments until Higgins briefs the industry on Thursday.

"The primary goal of these measures is to increase consumer protection," RegTel spokesperson Kieran Fagan told ENN. "I think the publication of adjudications will be of most interest to the general public, as they will now be able to see what the problems are and who is causing them."

Consumer complaints against premium rate operators have soared recently, with over 2,000 complaints being logged by RegTel's call centre in the year ending March 2007. The majority of complaints were from consumers who claimed they had never subscribed to premium rate services, yet still found themselves being billed. Others focused on problems with trying to opt-out of such services. Parents also contacted the regulator with complaints about their children having unwittingly subscribed to expensive premium rate services.

The full text of the new draft code of practice, which is the sixth since RegTel was founded in 1995, will now be put out for public consultation before being adopted. It can be viewed on www.regtel.ie.