Regulating to build consumer trust in phone-paid services
PhonepayPlus is the organisation that regulates products or services - such as competitions, TV voting, helplines, adult entertainment, downloads, new alerts or interactive games - that are charged to users' phone bills or pre-pay accounts.

9 Additional procedures concerning network operators

9.1     If it appears to PhonepayPlus that a network operator has failed to comply with its obligations under this Code (whether the subject of a direction or not):

  1. PhonepayPlus will set out in writing the details of the apparent failure to comply.
  2. The network operator will be given a reasonable time to respond. This response will normally be required within five working days.
  3. Upon receipt of the network operator’s response or if the network operator does not respond within the time required, the Executive will prepare a report, together with supporting evidence, which will be placed before Tribunal appointed to adjudicate upon the matter. The adjudication will be provided promptly in writing to the network operator.
  4. The Tribunal may invite the network operator to make informal representations to it in person in order to clarify any matter or the network operator may request the opportunity to make such informal representations to the Tribunal.
  5. The network operator or the Executive may require at any point in the procedure that the matter be dealt with by means of an oral hearing provided that no requirement for an oral hearing may be made more than 10 working days after the provision of any adjudication made under paragraph 9.1c.


9.2     Oral hearings taking place under this Section shall be heard by a panel of no less than two Board members, one of whom shall be appointed as the Chairman.

9.2.1     The procedures for hearings and related matters shall be as set out in paragraphs 8.10, 8.11and 8.12 as though ‘network operator’ had been substituted for ‘applicant’ throughout.

9.2.2     The hearing shall be conducted in private unless the network operator or the Executive otherwise requires. If a hearing is in public, either party may request that any part of the hearing be conducted in private and any such application shall itself be heard in private.

9.2.3     The Tribunal shall, as soon as practicable after the hearing, provide a reasoned written decision. This written decision shall be published by PhonepayPlus.

9.2.4     If the Tribunal determines that the network operator has failed to comply with its obligations under the Code, then the Executive will place before it the network operator’s details. These will include a list of any previous determinations of failure to comply, sanctions directed and any other relevant information.

9.2.5     The Tribunal may impose, by means of a direction to the network operator imposing a sanction upon it, one or more of the sanctions set out in paragraph 2.6.1, which are:

    “2.6.1     Non-compliance by a network operator with any of its obligations set out in this Code shall be dealt with in accordance with Section 9. If PhonepayPlus determines that a network operator is in breach of any of its obligations, then, having taken all relevant circumstances into account, it may make a direction imposing a sanction on the network operator in the form of any or all of the following depending upon the degree of seriousness with which it regards the breach;

  1. a reprimand and/or a requirement that the network operator must comply and remedy the consequences of the breach,
  2. an instruction to pay an appropriate fine,
  3. an instruction to cease to provide its network and/or services for the carriage of any particular type or category of premium rate services for a certain period,
  4. an instruction to pay reasonable and valid claims for refunds.”

9.2.6     All network operators on whom a sanction is imposed may be invoiced for the administrative and legal costs of the work undertaken by PhonepayPlus. Non-payment within the period laid down by PhonepayPlus will be a failure by the network operator to comply with its obligations under the Code and may result in the imposition of a further sanction direction.


9.3     A direction or the obligation to comply with any other obligation under this Code is not automatically suspended by the initiation or utilisation of any of the procedures set out above. The network operator may apply in writing to the Chairman of the Code Compliance Panel setting out the grounds on which a direction or obligation should be suspended. Unless the Chairman of the Code Compliance Panel considers that there are exceptional reasons in the particular case to grant the application, he will only do so if he is satisfied that not to do so would give rise to undue hardship, and that to do so would not give rise to a significant risk of public harm. If the network operator has not been granted a suspension of the direction or obligation and has not complied with the direction or obligation, the Chairman of any Tribunal may stay an oral hearing pending compliance.

9.4     A network operator may appeal to the IAB against any Tribunal decision which directs that a sanction be imposed.

9.5     If a network operator fails to comply with a sanction direction issued following the process set out in Section 9 (including any appeal to the IAB), PhonepayPlus may (without prejudice to any enforcement action which it may take) refer the matter to Ofcom in accordance with Section 120 of the Act for it to take such action as it shall see fit.

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