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Friday, April 30, 2010

New regulation proposed for premium rate phone services

PhonepayPlus, the organisation that regulates 'phone paid' services for fixed lines and mobiles in the UK, is proposing a new way of regulating premium-rate telephone services. It's created a new Code of Practice that shifts the responsibility for legal compliance to those who actually operate and promote the service, helping it to quickly and directly target any provider responsible for causing consumer harm.

PhonepayPlus has started a 10-week consultation period with consumers and industry stakeholders. Ofcom is also inviting comments about the draft code, which it says would strengthen the regulatory regime while creating a flexible and proportionate regulatory framework for legitimate providers.

Paul Whiteing, PhonepayPlus Chief Executive, said "The proposed Code is the result of ongoing discussion with industry and extensive consumer research about what is needed to secure a better premium rate services market which delivers consumer confidence and business certainty. We want an industry that puts consumers first and we believe a Code that focuses on outcomes helps to secure that and, as a consequence, a better market for all. It also allows industry to decide how best to achieve compliance with the Code while ensuring regulation is flexible and nimble enough to meet the demands of a rapidly-changing market."

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Author: The Fonecast
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