The regulation of premium rate telephone numbers

A premium rate telephone number is a telephone number which begins with 070, 084, 087, 09 and 118 (and five-digit mobile short codes). Premium rate telephone numbers are mainly used for premium rate services including competitions, TV voting, horoscopes, chat lines, adult lines, recorded information, professional advice services (for example, computer support help lines) and directory enquiries.

Premium rate services refers to the provision of premium rate telephone services, as well as other services that are charged to phone bills or pre-paid phone accounts.

The cost of premium rate telephone numbers varies widely from approximately £0.75 to around £3 per minute (they are most expensive from mobile phones). Such calls might be shown on phone bills as a premium rate call or a high premium rate service.

The Communications Act 2003 gave Ofcom the responsibility for regulating premium rate services. The Phone-paid Services Authority (PSA) (formerly, PhonePay Plus) is responsible for the day-to-day regulation of the premium rate services market on Ofcom’s behalf. All providers of premium rate services are required to register with PAS before providing services. Registration must be renewed annually.

The PSA is the UK’s regulator for premium rate services which come within Ofcom’s definition of Controlled Premium Rate Services (“CPRS”). A CPRS is, essentially, a premium rate service falling within one or more of the following categories:

• the service is obtained through a Special Services Number (except an 0843/4 number) and charged at least 5p per minute for BT customers
• the call is through a PRS Number and the Service Charge for the call is at least 5.833 pence per minute or 5.833 pence per call (plus VAT)
• the service is obtained other than through a Special Services Number, or a PRS Number, and the charge is at least 10p per minute
• the service is a Chatline Service, it is Internet Dialler Software operated, or it is a Sexual Entertainment Service

The PSA Code of Practice sets out the rules with which all providers of premium rate services should comply (please note that adherence to the Code is voluntary if the service does not come under the CPRS umbrella, above).

The Code of Practice imposes several obligations on providers of regulated premium rate services including in relation to:

• Transparent and accurate pricing information
• Treating consumers fairly and not to mislead them
• Not to invade consumers’ privacy in an unreasonable way
• Not to cause harm or unreasonable offence to consumers or the general public

The Code sets out detailed expectations of providers of premium rate services; and contains specific provisions to protect and safeguard against the exploitation of children.

The Code of Practice under section 120(3)(a) of the Communications Act 2003 covers all providers of premium rate services situated in the UK (or which are accessed by users in the UK). However, compliance with the Code is voluntary, unless the service comes within the meaning of CPRS – in which case compliance is obligatory.

The PSA has the power to investigate complaints relating to breaches of the Code of Practice and to monitor premium rate services. It also has the power to apply sanctions in the event that the Code is breached.

Adjudications by the PSA are conducted by the members of the Code Compliance Panel (Panel) sitting as a formal tribunal. There is a range of sanctions available in the case of non-compliance, and the Tribunal has discretion as to what sanction to apply in each case, depending on the seriousness of the breach in question. The Tribunal will consider the impact of the breach, as well as any aggravating and mitigating factors.

Sanctions available include:

• a reprimand and/or warning;
• ordering a provider to give refunds to some or all consumers;
• a fine – up to a maximum of £250,000 per breach of the Code;
• barring access to the service;
• requiring a provider to remedy the breach of the Code;
• requiring a provider to obtain compliance advice or permission to run a service;
• requiring a provider to submit to an audit of the service; and/or
• banning a provider or individuals associated with the provider from running some or all premium rate services.