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• West Firms Premium Rate Warning

Introduction

Local businesses should be aware they could be falling foul of guidelines set by the premium rate services industry watchdog, warns solicitors Ashfords whose offices are in Bull Wharf, Bristol.

They could come up against regulator ICSTIS, which publishes and enforces a code of practice that sets out the rules governing the content and promotion of premium rate services.

ICSTIS deals with the investigation of highly publicised complaints such as those made recently against Channel 4's Richard & Judy's You Say We Pay competition and the BBC's Saturday Kitchen.

"As a lawyer who regularly advises on commercial issues, I am increasingly aware of the need for businesses to balance commerciality with the rights of consumers," says Kirsten Marle from Ashfords' commercial team.

"Businesses should be aware of the requirements if they are planning to utilise a premium rate service, particularly as industry and public concerns over the misuse of such services, and resulting media coverage, continue to mount.

"While a breach of the code of practice does not constitute a breach of UK statutory law, it is a guideline of 'best practice'."

ICSTIS has the power to impose fines and bar access to services. It can also bar the individual or individuals behind a company from running any other premium rate services under any company name for a set period.

Certain information must be provided to ICSTIS before the service commences and, in the case of some types of services, prior permission of ICSTIS must be obtained.

Premium rate services have become increasingly popular over recent years. They can be efficient money-making tools while also providing consumers with services quickly and easily.

Typical services include TV vote lines, competitions and scratch cards, mobile phone ring tones and logos, horoscopes, sports results, interactive TV games and information such as weather, traffic, and directory enquiry services.

Figures published by ICSTIS indicate that there are approximately 45,000 premium rate services in operation at any one time, generating a revenue of around £1.2 billion in 2006.

Ashfords is regulated by the Solicitors Regulation Authority. The information in this article is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.