The DTI proposes a �250,000 fine for breach of the Premium Rate Services Code of Practice

The DTI published today a consultation proposing to raise the maximum penalty for misuse of Premium Rate Services (PRS) from �100,000 to �250,000.

This consultation is further to Ofcom�s December 2004 review of The Regulation of Premium Rate Services in which Recommendation 6 stated (with regards to the code of practice of the PRS regulator ICSTIS) that:

�the DTI should consider whether the maximum fine of �100,000 for breaking the code of practice, or the PRS Condition set by us under section 120 of the Communications Act 2003, is high enough.�

Another proposal contained in this consultation is allowing Ofcom to provide ICSTIS with contact details of those communications providers to which Ofcom allocates PRS numbers. This is currently prohibited under section 393 of the Communications Act 2003. This is understood to hamper ICSTIS� ability to swiftly investigate PRS activity and to identify and cut-off PRS scams before they cause significant damage to consumers.

The list of questions consulted on includes the following:

1. Do you agree that the maximum limit for breaching the ICSTIS Code should be raised from �100,000 to �250,000?
2. Do you consider that a new maximum fine of �250,000 will be sufficient deterrent in the light of the levels of profit made by rogue PRS providers in recent months?
3. Do you agree that ICSTIS should be added to the list of relevant persons to whom Ofcom can disclose information for the purpose of enabling them to administer and enforce the Code?

Responses by those interested can be submitted to the DTI no later than 20 September 2005.

In addition, as we reported earlier, another recommendation by Ofcom in their PRS review is now in the process of implementation, with ICSTIS� proposal of a 30 days moratorium on payments by network operators to PRS providers being the subject of a consultation published by Ofcom earlier this week.

Amit Rainhartz

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