The Forum kicked off at 2pm with a welcome from PhonepayPlus' Chairman, Sir Alistair Graham, who pondered the tension between customer and consumer, and asked whether the pursuit of profit is always at loggerheads with consumer protection.
Next, David Oatway, Market & Policy Analyst at PhonepayPlus, set the scene with an overview of the consumer experiences of phone-paid services, based on both PhonepayPlus complaints and newly commissioned research.
Ria Barnabas of Recom presented the initial findings of this research which shows that consumers are enticed by the novelty factor of these services and cited the chance of winning a prize as their major reason for entering competitions. She said that many interviewees felt there was a disparity between what they ‘expected' and what they ‘got' and this, paired with a feeling that the promotion is unclear and terms and conditions are confusing, made consumers wary. Ria concluded that the best way to establish trust, irrespective of service, is through clarity and transparency on all levels.
Next, Sir Alistair introduced Phillip Cullum, Chief Executive of the National Consumer Council. Phillip's presentation centred on two main points: that active consumers making informed choices are the ideal and that better regulation is a way to help, not hinder, businesses. He emphasised that regulation should be used to open up, not close down, markets through effective regulation.
The Forum attendees were next shown a video production, commissioned by PhonepayPlus, featuring young people aged 9-12 which explored their usage and experiences of PRS. The overall tone of the interviewees was that they had previously used these services, and would like to do so again, but they often felt as if the services weren't completely trustworthy and transparent.
A panel of consumers (ranging in age from 19-77) was then invited to share their experiences. Moderator Simon Bates, Head of Communications at PhonepayPlus, asked them which services they had used previously, what the experience had been like, whether they were still using similar services and, if not, what would encourage them to use once again. The general consensus of the panel was that there is a lack of trust and transparency. The segment ended on a positive note with the panellists conveying that they would be willing to use the services again if transparency was improved - they were particularly keen on one-off payments as opposed to subscriptions.
‘The provider's perspective' was given by Sean Taylor, Director of Redwood Technologies. Sean offered a balanced analysis of the aspects of the industry that are positive (convenient way of paying, the use of these services in the charity sector), as well as those that need work (damaged reputation due to negative media attention). Sean concluded with some suggested actions, including a PR campaign for the market-at-large.
Next, Claudio Pollack, Director of Consumer Policy at Ofcom, gave a brief update on recent Ofcom initiatives, for example the Review of Additional Charges on Telecoms Bills, the stamping out of silent calls and the work that's been done on mobile mis-selling. Claudio concluded with his assessment of the revised Ofcom/PhonepayPlus relationship saying that framework agreement was working well and Ofcom were pleased with the progress made.
Mike Haley, Director of the Consumer Protection Group at the Office of Fair Trading, was next on the agenda with an update on the Consumer Protection from Unfair Trading Regulations that are coming into effect on 26 May 2008. Mike's presentation expanded on the Fact Sheet (www.phonepayplus.org.uk/pdfs_news/UCP_Factsheet.pdf) that PhonepayPlus has published on this topic which gives guidance on what these new regulations mean for the PRS industry. Mike explained the legislative framework, as well as how the regulations will be enforced and the importance of self-regulation.
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