General FAQs


Who is PhonepayPlus?

PhonepayPlus is the independent regulatory body for all premium rate charged telecommunication services and an agent of Ofcom, the communications industries regulator. We are non-profit making and comprise of ten remunerated part-time Board members, who are supported by a full-time Executive.

The CCP has the decision-making powers that allow them to determine whether breaches of the Code of Practice have taken place or not. The Board determines the strategic direction of the organisation. The Executive provides administrative support to the Board.

For example, the Executive will contact you if they suspect that a breach has taken place and will be available to answer any questions that you may have about the regulatory framework, investigation process or any policy matters. The Executive will also ensure that an adjudicating panel has access to the independent, impartial information they need to make a decision. So it's important that you work with the Executive to make sure the Board and the CCP are fully aware of your particular circumstances.

PhonepayPlus operates an industry Code of Practice ("the Code") which covers the provision, content and promotion of premium rate services. The Code has been approved by Ofcom under section 121 of the Communications Act 2003 ("the Act"). Therefore, all providers of premium rate services, as defined in section 120 of the Act are bound by the provisions of the Code.

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Do I need to register with PhonepayPlus?

All service providers are required to register with PhonepayPlus. It is also recommended that  Information Providers and Network Operator s   register with PhonepayPlus, however it is not currently a requirement. 

Upon registering as a service provider or information provider you will receive an automated e-mail response containing a unique regsitration number. Please keep this safe as you will need to refer to it in future. 

Registration is free and simple. Click here to register.

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What is the PhonepayPlus Code of Practice and does it apply to network operators?

The current (11th edition) Code of Practice is in effect until 31 August 2011. From 1 September 2011, you will need to comply with the new (12th edition) Code of Practice, which is also supported by new Guidance that replaces the current Help Notes, Fact Sheets and Statements of Expectation. The new Code and Guidance are also available in an interactive version – this allows providers to choose the service type(s) that they would like to set up/run and provides them with a comprehensive list of advice based on the service type(s) that they choose.

Additionally, the new Code of Practice will be accompanied by a new Registration Scheme. From 1 September 2011, ALL companies involved in providing premium rate services to consumers (including Network operators) will be required to register (or re-register if they had previously registered for a SPN under the 11th edition of the Code) with PhonepayPlus and pay a registration fee (although there are a few exemptions from these requirements). You are able to register on the new Scheme from April 2011 – click here to get registered now.

The Code sets out the rules and regulations that apply to anyone providing premium rate services. It covers the promotion, content and delivery of all premium rate services. You can download the current (11th edition) Code of Practice here.

As a Network operator, most of the rules you'll have to follow are set out in Parts 2, 9, 11 and Annex 1 of the Code (11th edition). You should however be familiar with the whole Code as various other parts may have an impact on you and/or your clients.
 

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If I have numbers allocated to me from Ofcom, does that mean I am a network operator?

Not necessarily. Ofcom can allocate numbers to Electronic Communications Network Providers or, in some cases Electronic Communications Service Providers, as they are defined by the Communications Act 2003. PhonepayPlus' definition of a network operator (see paragraph 11.3.3 of the current Code of Practice) is narrower and more practical for the purposes of effective regulation of the premium rate industry. If you are unsure, view the Help Note on determining if you are a Network operator. 

The current (11th edition) Code of Practice is in effect until 31 August 2011. From 1 September 2011, you will need to comply with the new (12th edition) Code of Practice, which is also supported by new Guidance that replaces the current Help Notes, Fact Sheets and Statements of Expectation.

The definitions of providers will change under this new Code of Practice. The General Guidance Note on ‘Definitions of those involved in providing PRS’ sets out PhonepayPlus’ expectations of the various roles under the new PhonepayPlus Code of Practice.

Additionally, the new Code of Practice will be accompanied by a new Registration Scheme. From 1 September 2011, ALL companies involved in providing premium rate services to consumers (including Network operators) will be required to register (or re-register if they had previously registered for a SPN under the 11th edition of the Code) with PhonepayPlus and to pay a registration fee (although there are a few exemptions from these requirements). You are able to register on the new Scheme from April 2011 – click here to get registered now.

If PhonepayPlus does not consider you to be a 'Network operator', you may be classed as a ‘service provider’ or an ‘information provider’ under the current (11th edition) Code of Practice. If you are unsure, you should explain your business model and circumstances to a member of the PhonepayPlus Industry Affairs Team who will be able help - 0845 026 1060* / compliance@phonepayplus.org.uk.

*Calls provided by BT will be charged at up to 5p per minute. Mobile and other providers' charges may vary and are likely to cost more.

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Do I have to register with PhonepayPlus?

The current (11th edition) Code of Practice is in effect until 31 August 2011. From 1 September 2011, you will need to comply with the new (12th edition) Code of Practice, which is also supported by new Guidance that replaces the current Help Notes. Under the current (11th edition) Code of Practice, if you are a Network operator or a service provider you are required to register your details with PhonepayPlus prior to operating.

However, the new Code of Practice will be accompanied by a new Registration Scheme. From 1 September 2011, ALL companies involved in providing premium rate services to consumers (including Network operators) will be required to register (or re-register if they had previously registered for a SPN under the 11th edition of the Code) with PhonepayPlus and to pay a registration fee (although there are a few exemptions from these requirements). You are able to register on the new Scheme from April 2011 – click here to get registered now.
 

How do I know if my service provider client has registered with PhonepayPlus?

The current (11th edition) Code of Practice is in effect until 31 August 2011. From 1 September 2011, you will need to comply with the new (12th edition) Code of Practice, which is also supported by new Guidance that replaces the current Help Notes.

The new Code of Practice will be accompanied by a new Registration Scheme. From 1 September 2011, ALL companies involved in providing premium rate services to consumers will be required to register – or re-register if they had previously registered for a Service Provider Number (SPN) under the 11th edition of the Code – with PhonepayPlus and to pay a registration fee (although there are a few exemptions from these requirements). You are able to register on the new Scheme from April 2011 – click here to get registered now.

From the opening of the new Registration Scheme on 27 April 2011 until the new Code of Practice comes into force on 1 September 2011, providers will be compliant with the current (11th edition) and future Codes if they register on the new Registration Scheme. We have informed Network operators that they can accept a provider’s ‘organisation number’ from the new Registration Scheme in lieu of an Service Provider Number (SPN) in this period, with the added bonus that the Network operator will then know that the provider is compliant with the new Code of Practice rules in advance of the date of enforcement.

After 1 September, Network operators should not do business with any company that is not registered with PhonepayPlus. Network operators can check whether a company is registered by requesting the company’s ‘organisation number’ under the new Registration Scheme.
 

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What is the PhonepayPlus levy and how will PhonepayPlus collect the levy?

We are funded by contributions made by the industry. We charge a levy (a percentage of premium rate outpayments) in a similar way to a tax. You will collect this levy from the payments made to service providers.

The levy is currently set at 0.48% of outpayments. For more information, view Annex 1 of the Code of Practice - funding arrangements.

Before the beginning of April each year, we'll ask you to submit a financial report forecasting the level of outpayments you predict you'll be making in the forthcoming year, taking into account business levels in the preceding year, plans for marketing in the forthcoming year and other factors that may affect your business. We then calculate the levy charge based on these figures and will invoice you in 12 equal monthly installments. Please note that any of the financial reports submitted to PhonepayPlus can be subject to audit.

What happens if you do more or less business than predicted? Well, every quarter we'll ask network operators to submit a financial report declaring your outpayments over the preceding three months. We'll also ask you for a final report at the end of the year detailing outpayments made over the whole year. We will then reconcile the figures in these reports with the forecasted figures and the levy payments you've already made.

Collection of the levy is the responsibility of the network operator. If the levy has not been collected from the service provider, the network operator will still be expected to pay it to PhonepayPlus as if it had been collected. If the network operator fails to pay the full amount to PhonepayPlus they will be considered to be in breach of their obligations and the Code.

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What happens if I cannot comply with the obligations set out in the Code of Practice?

The Code has been drafted after extensive consultation with network operators in the industry to ensure that they are practical and reasonable obligations that all stakeholders can comply with. As a responsible network operator in the premium rate industry it is essential that you meet your obligations to the Code of Practice and support PhonepayPlus in its regulatory work. Of course we are here to help you in anyway we can to ensure there is no breach of the Code, so, If you have a problem or are facing difficulties, please contact us as soon as possible.

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What should I do if I receive a breach notice?

  1. Read through the Breach Notice carefully.
  2. Set out, in writing, your response to ALL the allegations made against you.
    Your written response should include, but need not be limited to:
  3. your reasons for either accepting or disputing the allegations set out.
  4. any and all documentation or evidence which will support the statements made in your response.
  5. any and all other matters that you wish the CCP to take into account in respect of the allegations against you.
  6. Send a copy of your written response by the set deadline, to the member of the Executive responsible for handling your case. You should keep a full copy of the response and any attached documents for your own reference.


If you need more time to respond to a breach notice you should contact the case officer named at the bottom of the breach notice as soon as possible, before the deadline expires. The CCP is keen to hear your views, but if you have missed the deadline without arranging an extension, or if you don't respond at all, then the CCP will have to assume that you do not wish to comment on the matter and will come to a decision based on the information that is in front of them.

You can send your response: by email, fax or in the post.

  • PhonepayPlus email addresses use the employee's first initial followed by their surname, then followed by @phonepayplus.org.uk,
  • or for the attention of your case officer to: PhonepayPlus, Clove Building, 4 Maguire Street, London, SE1 2NQ.

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Can breaches be dealt with informally?

The Executive has discretion to deal with some very minor matters of non-compliance on an informal basis. But only when these complaints have been acknowledged by the service provider, remedied immediately and that no consequences have arisen from the very minor breach. If there is any disagreement about whether or not the breach has occurred, the matter will then be investigated formally.

If the matter is resolved informally the details of the breach/es are still recorded on your file and posted on the PhonepayPlus website. If minor infractions are repeated then they can only be dealt with on a more formal basis.

If the matter is resolved informally, you will not be liable to pay an administration charge to cover the costs of carrying out the investigation.

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What if I want to meet with PhonepayPlus to discuss the matter instead of responding in writing?

If your case is being investigated, it's likely that you'll need to give us your written comments or documentary evidence. However, you can also make ‘informal representations' to the Adjudication Panel or you can ask for an oral hearing.

In our ‘informal representations' process you're allocated 30 minutes to present your response to the alleged breaches in person to the CCP.

It's an informal and relaxed environment and neither you nor PhonepayPlus will be legally represented, but the case officer who wrote to you will be present. The CCP will still need to see your written response to the breach, in writing, before the stated deadline.

The cost of your informal representation will be added to the overall costs we incur in investigating your case. If breaches are upheld, you'll be invoiced for all administrative costs incurred.

‘Oral Hearings' are more formal proceedings that are often dealt with through the legal representatives of both parties, although legal representation is certainly not a requirement.

You can request an Oral Hearing before or after the CCP has considered your case. If you do want to request an Oral Hearing, you need to make a formal, written request to do so in advance of the deadline for written submissions.

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Who is the CCP?

The Code Compliance Panel is made up of nine members. Three are legal experts, three are non-industry members of the PhonepayPlus Board and three are lay members (selected on a rotational basis). Each adjudicating panel consists of one legal expert, one non-industry member and one lay member.

The CCP meets regularly (every fortnight) to consider cases and evidence submitted and to decide if the breaches raised by the Executive should be upheld. It also decides whether permission certificates should be issued to particular service providers.

If the breaches are upheld the CCP will then decide what sanctions should be imposed.

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What happens if a breach is upheld against me by the CCP?

In accordance with the Code, if breaches are upheld by the CCP, one or more of the following sanctions may be imposed:

  • A formal reprimand.
  • A requirement to comply with directions and/or a remedy of the breach or the consequences of the breach.
  • Payment of an appropriate fine.
  • A bar for a defined period - the bar could apply to a service or range of services, numbers, categories of service or on the provision of network carriage.
  • Pay reasonable and valid claims for refunds.
  • Additional administration charges.


We'll publish details of an investigation and the CCP's decision on this website. If the CCP decides that you have not complied with your obligations then details of any sanctions that have been imposed will also be published on our website.

There may be an administrative charge. Our administration charges ensure that any parties found to be in breach of the Code contribute to the costs we incur processing that case.

You must pay your fine and/or administration charge within 10 days from the day you are invoiced.

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How do I appeal against a decision by the CCP?

There are two options open to you; a review or an oral hearing. For more details regarding reviews and oral hearings (including time limitations) please refer to paragraphs 7.8 and 7.9 of the Code.

You'll usually ask for a Review if there is a specific aspect of the matter which you disagree with or feel has not been considered fully. For example, if there is information that was not available to the Panel at the time that they originally decided the case against you which is likely to have affected the outcome of the case. You can request a Review of a decision made by an Adjudication Panel by writing to your case officer and setting out the reasons why you believe a Review should be granted. The Panel will consider your letter and decide whether a Review should take place. If a Panel agrees that a Review is appropriate they will either review it there and then or schedule for it to be reviewed on a different date. For more details, view the Procedures and Sanctions section of the Code of Practice, paragraph 8.8.

If you have more serious concerns and feel a Review is not sufficient, or you have had a Review and are unhappy with the decision, you may want to have the case re-heard in person. If so, you can request an Oral Hearing. For more details regarding oral hearings, including time limitations, view the Procedures and Sanctions section of the Code of Practice, paragraph 8.9.

If you are unsatisfied with the outcome of the Oral Hearing you may appeal the matter to the Independent Appeals Body (IAB). For more information, view the Appeals section of the Code of Practice.

There are numerous factors which may affect how long it takes for a case to be reviewed or reheard, ranging from how soon you can get your application to us to how large, complex or detailed the documentation submitted in evidence is (Panel members need to make sure they have enough time to read and examine all the evidence in order to prepare fully before they hear the case). Reviews usually take less time to arrange than Oral Hearings.

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While I'm waiting for a hearing, do I still have to pay my fine or administration charge?

Any sanctions imposed following adjudication will not be suspended just because you have requested a review or an oral hearing. You must take care to ensure that all the sanctions are complied with straightaway. If you continue to act without regard to the sanctions that have been imposed you will be committing a breach of the Code which could lead to further sanctions and a referral to Ofcom.

If you want to have one or more of the sanctions suspended pending the hearing then you must make a written application to the Chairman of PhonepayPlus (separate to your application to have the case reheard) explaining which sanctions you would like suspended and why. For more details, view the additional procedures concerning network operators section of the Code of Practice, paragraph 9.3.

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Will a review or oral hearing cost me anything?

Where an oral hearing or review has been requested you should be prepared to pay the costs arising from that request. This may include the cost of the Oral Hearing or Review Panel and any legal and administrative costs incurred by PhonepayPlus.

These costs are only likely to be imposed if the CCP upholds breaches against you and if the Panel decides that it is appropriate for you to pay those costs. The Panel may also consider whether it is appropriate to refund you any administration charges you have already paid during the course of the matter.

If you have any further questions or want clarification on any of the points raised in these FAQs please don't hesitate to contact the Executive on 020 7940 7474.


Am I a service provider or an information provider?

From 1 September 2011, ALL providers will need to comply with the new (12th edition) Code of Practice , which is also supported by new Guidance that replaces the current Help Notes, Fact Sheets and Statements of Expectation.

The definitions of providers will change under this new Code of Practice. The General Guidance Note on ‘Definitions of those involved in providing PRS’ sets out PhonepayPlus’ expectations of the various roles under the new PhonepayPlus Code of Practice.

Additionally, the new Code of Practice will be accompanied by a new Registration Scheme. From 1 September 2011, ALL companies involved in providing premium rate services to consumers (including Network operators, aggregators, service providers and information/content providers) will be required to register – or re-register if they had previously registered for a SPN under the 11th edition of the Code – with PhonepayPlus and to pay a registration fee (although there are a few exemptions from these requirements). You are able to register on the new Scheme from April 2011 – click here to get registered now.

Under the current (11th edition) Code of Practice, a ‘service provider’ is the party that contracts directly with a Network operator for the provision of a premium rate number or shortcode for mobile services.

An ‘information provider’ is any party to which the service provider sub-contracts the use of a premium rate shortcode or number, which the service provider has previously obtained from the Network operator. Information providers will, in many cases, devise and promote the premium rate service which the consumer purchases.

When does PhonepayPlus expect to take over regulation of the 087 number range ?

PhonepayPlus has regulated 0871, 0872 and 0873 number since 1 August 2009.

Under the new (12th edition) Code of Practice, which comes into force on 1 September 2011, 0871/2/3 providers are exempt from having to register on the new Registration Scheme for an initial period of one year. However, they do need to continue to comply with the Code of Practice, particularly the rules around pricing transparency and customer care arrangements.

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Why is prior permission required for some services?

Certain types of premium phone-paid services pose a greater risk of harm to users because of their content or method of operation - examples include live chat, gambling and counselling. These types of services, and others found here, can only be operated if PhonepayPlus has first provided written prior permission.

What services require prior permission?

  • Live services (please click here for a list of exempt live services)
  • Subscription services which cost over £4.50 in any given seven day period
  • Pay-per-page/image services
  • Participation Broadcasting
  • Remote gambling
  • Professional advice
  • Chat-lines(multi party chat)
  • Consumer credit
  • Counselling
  • Anonymous SMS
  • Voice based, text charged services
  • Call tv quiz services
  • Services utilising a dialler software
  • Services charged at more than £1 per minute where the total cost of the call can exceed £30
  • Services charged at more than £1.50 per minute.


For more detailed information on prior permission please visit here.

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How do I set up a live chat or psychic/tarot service?

You will need to obtain prior permission from PhonepayPlus before you can operate live chat or psychic/tarot services. You should note that there are the following costs;

  • £300 plus VAT for processing the application,
  • If you are granted permission you will need to have a security bond in place, the bond amount will vary depending on a number of factors, for example the types of services, the number of lines and whether home workers are used. This security bond needs to be in place for the duration of operation and 1 year after the service has been terminated.
  • Recording equipment is also required as all calls to these services must be recorded, please click here for further information.

Can I use a premium rate number to advertise job vacancies?

PhonepayPlus strongly advise that independent legal advice is sought before setting up a phone paid employment service, as most services of this type are subject to legal restrictions. PhonepayPlus has provided additional guidance within the Employment, Employment Information and Business Opportunity Services fact sheet.

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How do I set up a competition service?

PhonepayPlus strongly advise that independent legal advice is sought before setting up a premium rate competition service, as most competition services are subject to legal restrictions. Once you have sought legal guidance please ensure that your service is compliant with the PhonepayPlus Code of Practice - of particular relevance will be Section 7.6 - Competitions and other games with prizes.

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Do I get my premium rate number through you (PhonepayPlus)?

No, you will need to contact a network operator or a service provider for the provision of a premium rate number. Click here for a list of network operators.

If you have any further questions please contact Industry Support.