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The Observer: Watchdog must use its new teeth -
11th September 2005
http://observer.guardian.co.uk/cash/story/0,,1567005,00.html
Jill Insley
Sunday September 11, 2005
The Observer
The premium phone lines regulator Icstis has been the archetypal toothless watchdog. It hasn't gone out of its way to find problems, but waited for consumers to bring them to it. Even when several people complained about Monstermob, the ringtones and games website, it had to be provoked by Cash before lumbering into action.
Sadly, complainants should not expect much action if the downloads giant is found to have broken the rules. Icstis can fine offending firms up to £100,000. But the consumer complaints website Grumbletext says that in cases involving reverse-billed messages - where you are charged for receiving texts carrying ringtones, football goal alerts and other similar services - the fines have averaged £10,000.
These have mostly been levied against firms linking the mobile networks and the premium rate service provider rather than the providers themselves.
As for compensation, think again. Icstis says it orders companies to compensate customers 'only in exceptional cases'. 'In all other cases, we can put you in touch with the relevant service provider who, although under no obligation to do so, may offer compensation.'
Customers can put an end to expensive texts flooding their mobiles by texting the word 'stop' back to the short code the texts are coming through on. But even this sensible scheme was organised by the mobile networks rather than Icstis.
This industry-funded body has only 11 complaints investigators - and just one monitoring investigator to check services before they are complained about.
But hopefully things are about to change. Following a torrid 2004, when complaints totalled 80,000 through problems with premium rate services on the internet, Icstis is getting new powers.
From next week, phone networks will not be allowed to pass on money raised by premium rate lines to the firms offering them for 30 days. If there is a problem, the watchdog can freeze the money indefinitely.
Next year Icstis will be able to hold back the money for three months and force the network provider to refund the customer's money, as well as fining offending companies up to £250,000.
None of this will help parents who do not keep an eye on what their children - particularly those on contracts which can run up unlimited bills - are up to with their mobiles. |
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