In October last year we posted an update regarding steps taken by Ofcom to improve enforcement of the rules applicable to provision of services over 070 numbers. This post triggered a long thread of comments by readers who have been targeted by 070 scams. The most recent comment, from only a few days ago, asks: �This thread was started in 2005. Is anything being done to stop these people???�

The answer to this question is: yes and no. Yes, following numerous complaints received by Ofcom, it has taken ad-hoc enforcement actions against certain communications providers to whom 070 numbers have been allocated. Will these actions stop 070 scams? Probably not.

In February this year Ofcom concluded an investigation into possible persistent misuse of networks or services and possible misuse of 070 personal numbers by TelXL Limited. The investigation was initiated due to more than 90 complaints received by Ofcom in 2005. Ofcom concluded that there are reasonable grounds for believing that TelXL has contravened and is contravening General Condition 17.8 of the General Conditions of Entitlement, on the basis that it has failed to take all reasonably practicable steps to secure that its customers comply with the rules relating to 070 numbers. TelXL�s customers in this regards are mainly resellers and service providers that contract with TelXL (or its resellers) for the purpose of provision of services to end users on 070 numbers allocated to TelXL.

In light of its findings Ofcom served a Notification on TelXL on 17 February 2006, setting out the contravention and the actions TelXL is required to take. Amongst other things TelXL was required to: amend its terms and conditions with its customers; provide information to its customers and train them with regards to their obligations in relation to use of 070 numbers; maintain a record of information and training provided to customers on the restrictions on the use of 070 numbers; regularly and actively monitor usage of 070 numbers by customers with a view to uncovering potential misuse; develop and document a process for handling complaints on misuse of 070 numbers and maintain a record of any investigations and actions taken in relation to misuse of 070 numbers; and develop a policy for action that will be taken when noncompliance is identified.

TelXL was also required to provide Ofcom with a compliance plan detailing the steps TelXL has taken or is taking to comply with the above. If TelXL does not comply with all these requirements, then Ofcom may issue an enforcement notification or may impose a penalty on TelXL.

A similar investigation that is still ongoing is the one initiated by Ofcom on 21 February 2006 against 1RT Group Ltd. This investigation was initiated following several hundred complaints received by Ofcom from consumers regarding fax back schemes being operated by two companies on 070 numbers allocated to 1RT. It is understood that these two companies sent faxes to consumers, which state that their contact details will be included in a database to receive adverts by fax. Recipients of the faxes are told that if they do not want to receive these adverts they can have their details removed from the database by faxing back on the 070 number provided. Complainants allege that when they fax back, the fax takes an extra long time to get through, resulting in high call charges.

It is questionable, however, whether these ad-hoc actions taken by Ofcom are enough to significantly reduce 070 scams. Such investigations take Ofcom months to complete and it is not clear whether the sanctions imposed are indeed efficient in motivating communications providers into taking the required steps to ensure that their service- providers / clients comply with the applicable rules. The TelXL case is a fine example, as it is not the first time that TelXL�s 070 numbers were investigated. A previous investigation into complaints of scams using 070 numbers allocated to TelXL was initiated by Ofcom in October 2004 but was closed after 3.5 months following steps taken by TelXL to disconnect the relevant numbers and to terminate certain reseller agreements. The more recent investigation against TelXL took 6 months to complete and resulted in the notification described above. If TelXL fails to comply for a third time, Ofcom may finally impose a more serious sanction.

Ofcom should look into reducing 070 scams more vigorously not only because of the direct harm caused to those who are scammed, but also due to the bad reputation these scams give 070 services in general and the resulting damage to those companies providing legitimate personal numbering services over 070 numbers and to those customers requiring such services.

** An update to this post was posted on 26 April 2006

Amit Rainhartz