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Internet Rogue Dialling

Answer

The Government has taken action to ensure consumers are adequately protected from internet rogue diallers. As a result of discussions with ICSTIS, the premium rate services regulator, a prior permission scheme for internet diallers was put in place in August 2004. This means that all diallers have to be approved by ICSTIS before they can be released. ICSTIS can order service providers to pay redress if they breach the Code, with the threat of automatic barring from providing any premium rate service if they default. The number of complaints has fallen dramatically since the scheme was introduced in August 2004. Complaints to ICSTIS fell to a low of about 50 per month in recent months, down from 10,000 per month when this problem was at its peak in 2004. The Government also asked the media and telecoms regulator, Ofcom, to review premium rate regulation in August 2004.Ofcom made a number of recommendations to reduce the scope for consumer harm. Many of these recommendations have already been implemented including raising the maximum penalty to £250,000 for those that abuse premium rate services. The flow of funds from network operators to service providers has now been slowed down. This will keep money in the system, which can then be used to pay redress to consumers who have been the victims of a scam. New rules on compensation for consumers who have been subject to a scam are being implemented. This change will mean that not only will ICSTIS be able to order refunds from service providers but also to collect the money from the telecoms companies to compensate consumers if it is not forthcoming from the service provider.

Secondary information

Type

Written question

Reference

441 c475-6W; 40300

Session

2005-06

Subjects

Complaints Compensation Fraud Fines Internet Telephone services Independent Committee for the Supervision of Standards of Telephone Information Services

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk