http://www.ashfords.co.uk/480 Last modified December 11, 2007 10:58
Click here to contact us Search Site

ICSTIS Code of Practice

Introduction

ICSTIS (the Independent Committee for the Supervision of Standards of Telephone Information Services) is the regulatory body for premium rate services. The Committee aims to protect consumers and has set standards for the promotion and content of premium rate services in the UK through a Code of Practice.

What are premium rate services?

Premium rate services offer a form of content, product or service that is charged to users' telephone bills. Typical services include chat, competitions, mobile phone ringtone downloads, interactive TV games, TV votelines and technical helplines.

The Code of Practice is divided into sections which give specific guidance in relation to:

1. network operators (the provider of the electronic communications network, for example, the telecoms company)

2. service providers (the provider of the service who contracts with the network operator to deliver the service)

3. each different type of service.

This article focuses on the guidelines for service providers and sets out steps that the service provider should take both prior to setting up the service and during its operation.

Prior to setting up the service

1. Notify ICSTIS of:

1.1 the number ranges (including dialling code) or other connection arrangements allocated to it by the network operator, and

1.2 the name, address, e-mail address, telephone and fax number of the person representing the service provider who is nominated to receive all communications in connection with the ICSTIS Code of Practice.

2. Where the Office of Communications ("OFCOM") has designated certain codes or number ranges for the provision of particular service categories, services within these categories must use those codes or number ranges.

3. Have readily available all documentary and other evidence necessary to substantiate any factual claims made.

4. Ensure that all services are of an adequate technical quality.

5. Check whether the service falls within one of the categories of services that requires prior written permission from ICSTIS.

6. Notify the Office of the Information Commissioner under the Data Protection Act 1988:

6.1 disclosing ICSTIS as a potential recipient of personal data, and

6.2 stating that data collected from callers may be used by ICSTIS for regulatory purposes.

When the service is in operation

7. Warn consumers that any data collected may be passed to ICSTIS.

8. If the service involves the collection of personal information, make clear to callers the purpose for which the information is required, identify the data controller and any different use to which the personal information might be put and give the caller an opportunity to prevent such usage.

9. Ensure that the service is not replaced on the same number by another service which might give offence to or might be inappropriate for callers reasonably expecting the original service.

Decency and honesty

10. Services and promotional material must not:

10.1 contain material indicating violence, sadism or cruelty, or be of a repulsive or horrible nature,

10.2 involve the use of foul language,

10.3 mislead, or be likely to mislead, by inaccuracy, ambiguity, exaggeration, omission or otherwise,

10.4 seek to take unfair advantage of any characteristic or circumstance which may make consumers vulnerable.

11. Services and promotional material must not, or must not be likely to:

11.1 result in any reasonable invasion of privacy,

11.2 induce an unacceptable sense of fear or anxiety,

11.3 encourage or incite any person to engage in dangerous practices or to use harmful substances,

11.4 induce or promote racial disharmony,

11.5 cause grave or widespread offence,

11.6 debase, degrade or demean,

11.7 promote or facilitate prostitution.

Pricing Information

12. The service provider must state clearly in all promotional material the likely charge for calls to each service. Prices must be noted in the form of a numerical price per minute, or the total maximum cost to the consumer of the complete message or services (both must be inclusive of VAT). When applicable, promotional material must make clear that calls from some networks may cost more than the likely charge shown.

13. Pricing information in text format must be easily legible, prominent, horizontal and presented in a way that does not require close examination.

14. In the case of promotions transmitted in television programme time, the pricing information must be spoken as well as visually displayed if the maximum call cost can exceed £2.00.

15. In cases where it is unlikely that a consumer will have seen or heard any promotion containing pricing information, the service provider must place a short, distinct pricing message at the beginning of the service.

Address Information

16. For any promotion the identity and contact details of the service provider (or the information provider) must be clearly stated so that consumers can contact them directly.

The 'identity' means:

16.1 the name of the company, partnership or sole trader

The 'contact details' means:

16.2 a full postal address including postcode, or

16.3 a PO Box number including postcode, or

16.4 a telephone helpline

Service Identification

17. In all promotional material, the code, prefix or short access number must be presented in a way that it can be easily identified as a premium rate code or an international prefix. If the service operates on an international number, it must be made clear in the promotional material that an international number is required.

18. In the case of services which are promoted in publications or media which are likely to have a shelf-life of 3 months or more, a statement must be included in the promotion to the effect that the information is correct as at the date of publication and that date must be stated. Any increase in the call charges during the life of the promotion must be made clear to the consumer through a short message at the start of the service.

19. No premium rate service may be promoted as being free of charge.

20. Service providers must use all reasonable endeavours to ensure that promotional material does not reach those for whom it, or the service, is likely to be inappropriate.

Promotions in non-print media

21. Promotions transmitted by radio, television, teletext, telephone, facsimile, Internet, SMS, email or any other form of non-print communication must observe the Code provisions in the manner most reasonable and appropriate to the technology.

22. Services must not be unreasonably prolonged or delayed.

23. Services must not contain incorrect information and it must be made clear to consumers when time-sensitive information was last updated.

What happens if your service does not comply?

ICSTIS can initiate a procedure where there appears to be a breach of the Code or investigate any complaints received from consumers.

Once the adjudication panel has determined that there has been a breach of the Code, ICSTIS has a range of sanctions which it may apply according to the degree of seriousness with which it regards the breach.

ICSTIS may:

1. Require the service provider to remedy the breach

2. Issue a formal reprimand, and/or

3. Require the service provider to submit certain or all categories of service and/or promotional material to ICSTIS for prior permission for a defined period, and/or

4. Impose an appropriate fine on the service provider, and/or

5. Direct the relevant network operator to bar access to some or all of the numbers allocated to the service provider for a defined period, and/or

6. Inform any relevant network operator that the service provider is prohibited from providing any premium rate service (or a particular type of service) for a defined period

7. Require that the service provider pays reasonable and valid claims for compensation.

In summary:

1. When setting up your service, ensure that your proposed service complies with the ICSTIS Code of Practice.

2. Once the service is in operation, check that the pricing information, service identification, address information, data protection provisions and standards of decency are permanently in place and are closely followed.

3. Remember that specific rules apply to specific types of service – ensure you know what these rules are and that your service complies.

4. Remember that ICSTIS can take action if your service does not comply or a complaint is received from a consumer.

This article has set out the general steps that a service provider needs to take in order to comply with the ICSTIS Code of Practice. There are, however, additional issues that need to be addressed in relation to the specific type of service that the service provider is offering. Should you require specific advice on ICSTIS compliance or assistance in obtaining ICSTIS approval for your service, please contact a member of our Commercial team.

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.
  • 6th October 2006
Print Window
Lexcel accredited by the Law Society