Complaints shoot up about Unsolicited Telecom Services

Turnover in the UK premium rate telecommunications services industry hit an all-time high in 2002 but so did complaint levels, according to ICSTIS. ICSTIS, the Independent Committee for the Supervision of Standards of Telephone Information Services, is the industry-funded regulatory body for all premium rate charged telecommunications services.

Their activity report shows how premium rate charging is now being used across all communications platforms for an ever-growing range of imaginative and innovative information and entertainment services, generating revenue of almost £1 billion last year. Premium rate charging is now just as likely to be used for fund-raising purposes, playing interactive TV games, downloading mobile ringtones or receiving news alerts as it is for entering competitions or casting votes.

At the same time, however, complaints about services increased by 43% in 2002 to 11,572, the highest level in the regulator's 17-year history.

According to ICSTIS, the main reason for the surge in complaints has been the rapid growth of unsolicited marketing. 'New forms of spam marketing - most obviously text messaging, emails and faxes - allow promotions to be sent to millions of people overnight,' explains ICSTIS chairman Sir Peter North. 'This so-called 'marketing' is often indiscriminate, and the content is too often deceptive and inappropriate to those it reaches. I have no doubt that the number of complaints we receive is just the tip of an iceberg of dissatisfaction.'

The regulator's statistics back this up. Complaints about services promoted by text message, for example, increased almost eight-fold in 2002 to 1,210. Typical concerns included the unsolicited nature of messages, the misleading descriptions of what was being offered, and pricing information which was either inaccurate or completely lacking. In 36 such cases investigated by ICSTIS last year, fines of up to £50,000 were imposed on the companies responsible and bars on access imposed on 15 occasions.

Unsolicited email promotions also caused indignation throughout the year. Almost 1,200 complaints were received from members of the public about a series of spam emails that tricked them into unknowingly activating a premium rate internet dialler. The individual behind the companies responsible was subsequently barred from operating any premium rate services for three years. In several other cases involving premium rate internet access, ICSTIS responded to complaints about companies based in Germany, Spain, the United States and the Far East.

'We know from experience that there is potential for harm when the pace of technological development outstrips consumer understanding,' says Sir Peter North. 'There are individuals who view the introduction of new technologies purely as an invitation to mislead and deceive.

'New regulation on its own, however, cannot be the simplistic response. Much of the answer lies in informing, educating and empowering consumers so that they become less susceptible to harm.'

Premium services are those advertised on either 090 dialling codes or, in the case of text services, on four or five digit short codes followed by a descriptive key word (for example, 82828 VOTE or 62626 CHAT). In some instances, such as interactive TV where viewers make 'calls' using their remote controls, the premium rate number may not be shown. In addition, ICSTIS regulates the new Directory Enquiry (DQ) services (offered on 118XXX numbers) that were introduced in December 2002. The scope covers information and entertainment via phone, fax, PC (e-mail, Internet, bulletin board), mobile (SMS/MMS/WAP) or interactive digital TV, and currently vary in cost from 10 pence per call to £1.50 per minute. There is a free helpline - 0800 500 212 - for consumers with queries or complaints about premium rate services.

Associated Link: ICSTIS

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