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.

7 Additionally provisions relating to specific categories of service

 7.1     Advice services
 7.2     Betting tipster services
 7.3     Virtual chat services (including text chat)
 7.4     Contact and dating services
 7.5     Children's services
 7.6     Competitions and other games with prizes 
 7.7     Consumer credit services
  7.8     Directory enquiry services (‘DQ')
  7.9     Fundraising and charitable promotions
7.10     Pay-for-product services
7.11     Sexual entertainment services
7.12     Subscription services

7.1    Advice services

7.1.1    All advice services must:..

  1. be conveyed in a responsible manner,
  2. indicate clearly in the promotional material or at the beginning of the service, the identity, current status and any relevant professional qualifications and experience of the person(s) or organisation supplying the information, or advice. If the advice is given by a person with no relevant qualifications, the service must explain the source of the information.
  3. be prefaced with a statement that the service user should not act upon advice which needs individual interpretation without first consulting a suitably qualified practitioner. 

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7.2    Betting tipster services

7.2.1     Service providers must ensure that services and promotional material do not:

  1. make claims about future selections being certain winners or about the certainty of profits,
  2. quote odds for future selections unless the availability of these odds can be substantiated.

7.2.2     Service providers must make clear that opinions on particular selections given in services or promotional material are opinions and not statements of fact.

7.2.3     Service providers must ensure that any claims made, including
previous selections and general statements about tipsters’ records of success, are capable of being substantiated.

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7.3    Virtual chat services (including text chat)

7.3.1    Definition of virtual chat services
Virtual chat services are not live conversation services but enable two or more users to exchange separate messages whether by recorded voice, text or pictures while engaged in the service. 
    
7.3.2    

  1. Service providers must take all reasonable steps to ensure that the participant in any virtual chat service is an authorised user and that nobody under the age of 18 uses virtual chat services.
  2. The only exceptions to this rule are non-adult (non-sexual entertainment) text and picture-based virtual chat services offered to the 16-17 age group, provided that the advertising of such services occurs in media where the target readership or audience is not below 16 years of age.
  3. In the case of group text virtual chat services, consumers must be informed of any conditions before they enter the service and, in particular, of the minimum number of messages they will receive and the price per message.
  4. In the case of text virtual chat services, the ‘STOP’ command must be available and consumers must be so informed before entering the service.
  5. Service providers must take all reasonable steps to discourage sexually explicit chat on services which are advertised in generally available media.

7.3.3     All virtual chat services must, as soon as is reasonably possible after the user has spent £10, and after each £10 of spend thereafter:

  1. inform the user of the price per minute of the call,
  2. require users to provide a positive response to confirm that they wish to continue. If no such confirmation is given, the service must be terminated.

7.3.4     Service provider employees who are to be involved in operating virtual chat services (whether or not for the purposes of monitoring) must be given adequate training in the relevant requirements of this Code before commencing operation. No such employee shall be under the age of 18.

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7.4    Contact and dating services

7.4.1    Definition of contact and dating services
Contact and dating services are services which enable persons who were previously unacquainted with each other to make initial contact and arrange to meet in person or otherwise continue to have contact with one another outside the service if they wish to do so.

Service providers who operate services which enable contact details to be exchanged, either in the course of exchanging messages in virtual chat services or otherwise, must:

  1. warn users and advertisers of the risks involved when contact details are given out and give clear advice on sensible precautions to take when meeting people through such services,
  2. ensure that publicly-available elements of the service do not contain contact details, addresses or any other means of direct contact,
  3. when requested by the advertiser, ensure that their details are removed from the service at the earliest opportunity and in all cases within 24 hours,
  4. make clear in the promotional material any restrictions on the location, sex and age range of users and of advertisers to the service,
  5. bar access to a voicemail box where the advertiser has not collected responses for more than four weeks. If the service provider is unable to tell when responses are collected, no advertisement may be published for more than four weeks. 

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7.5    Children’s services

7.5.1    Definition of children’s services
Children’s services are services which, either wholly or in part, are aimed at or should have been expected to be particularly attractive to children, who are defined for the purposes of this Code as people under 16 years of age.

7.5.2    Promotional material for children’s services must clearly state:

  1. the usual cost of the service,
  2. that the service should only be used with the agreement of the person responsible for paying the phone bill.


7.5.3          Children’s services, and any associated promotional material, must not:

  1. contain anything which is likely to result in harm to children or others or which exploits their credulity, lack of  experience              or sense of loyalty,
  2. include anything which a reasonable parent would not wish their child to hear or learn about in this way,
  3. make direct appeals to children to buy or donate, unless the product, service or donation is one which they could reasonably be expected to afford for themselves,
  4. encourage children to use other premium rate services or the same service again.


7.5.4     Children’s services must not:

  1. generally cost more than £3, or in the case of subscription services (see paragraph 7.12), more than £3 per month,
  2. involve competitions that offer cash prizes or prizes readily converted to cash.

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7.6    Competitions and other games with prizes

7.6.1    Competition services typically fall into five basic categories:

  • lotteries,
  • competitions,
  • other games with prizes,
  • an entry mechanism into a draw,
  • information about prizes and how to claim them.

Most of these are subject to legal restrictions. Before setting up such services, service providers are strongly advised to seek advice on legal and excise duty implications.

7.6.2     Promotional material for competition services which generally cost more than £1 must clearly display:

  1. the cost per minute and likely playing time, or the full cost of participation,
  2. details of how the competition operates and an indication of any tie-breakers.


7.6.3     Promotional material must clearly state any information which is likely to affect a decision to participate, in particular:

  1. any key terms and conditions, including any restriction on the number of entries or prizes which may be won,
  2. an adequate description of prizes and other items offered to all or a substantial majority of participants, including the number of major prizes and details of any restriction on their availability or use,
  3. where a prize consists wholly or in part of vouchers, the promotional material must specifically and prominently state the value of a single voucher as well as any total value.


7.6.4     The following additional information must also be made readily available on request, if not contained in the original promotional material:

  1. how and when winners will be informed,    
  2. how winner information may be obtained,
  3. any criteria for judging entries,    
  4. any alternative prize that is available,    
  5. the details of any intended post-event publicity,
  6. any supplementary rules which may apply.


7.6.5     Except where there are only instant prize-winners, promotional material for competition services must state when the competition closes. An insufficient number of entries or entries of inadequate quality are not acceptable reasons for changing the closing date of a competition or withholding prizes.

7.6.6    Competition services and promotional material must not:

  1. use words such as ‘win’ or ‘prize’ to describe items offered to all or a substantial majority of participants,
  2. to all or a substantial majority of participants,
  3. exaggerate the chance of winning,
  4. suggest that winning is a certainty, suggest that consumers must use a premium rate service in order to participate if an alternative postal entry route is available.


7.6.7    Service providers must ensure that:

  1.  prizes are awarded within 28 days of the closing date, unless a longer period is clearly stated in the promotional material,
  2. all correct entries have the same chances of winning,
  3. if there is any subjective assessment in the selection of the winning entries (e.g. tie-breakers) in a competition open to the general public, then judging is by a person or persons independent of the service provider and any intermediaries involved, or by a judging panel including at least one independent member.

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7.7    Consumer credit services

Prior permission must be obtained from PhonepayPlus for the provision of any service which provides, or provides advice relating to, consumer credit, regardless of the level of credit to which such a service relates.

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7.8    Directory enquiry services (‘DQ’)

7.8.1    Definition of a directory enquiry service
A directory enquiry (‘DQ’) service is a service one of the main or advertised purposes of which is to provide callers with the telephone numbers of subscribers and/or other end-users of electronic communications services (‘end-users’) by searching one or more sources of information (‘sources’) (whether held in paper or electronic form, and whether held or maintained by the service provider or by any other person) using information provided by callers as to particular end-users’ names and/or addresses.

7.8.2    

  1. In respect of a DQ service which is held out as providing numbers for the generality of end-users in the United Kingdom (or a part of the United Kingdom), that service must be provided using sources which include up-to-date information about all end-users in the United Kingdom (or that part of the United Kingdom) in relation to whom directory information can be obtained under General Condition 19.1 of the General Conditions of Entitlement (as amended by Ofcom from time to time).
  2. In respect of a DQ service which is held out as providing information about end-users outside the United Kingdom, that service must be provided using sources which include up-to-date information about all end-users whose telephone numbers can be obtained from the current edition of the published national directories or national DQ service available in respect of the country or countries which the DQ service is held out as covering.


7.8.3     Any promotion for a DQ service which provides numbers for less than the generality of end-users in the United Kingdom must expressly and clearly indicate the group of end-users in relation to whom the service is able to provide information.

7.8.4    

  1. A DQ service provider must, immediately upon a caller providing sufficient information to enable the telephone number he is searching for (‘the number’) to be identified, provide, or offer to provide, the caller with that number (unless legal or regulatory obligations prevent the number from being provided). If the caller then indicates that he wishes the number to be so provided, the service provider must immediately provide that number without the caller having to redial or incur any additional charge (save for the cost of continuing the call for a sufficient duration to receive the number).
  2. The number can be provided, in accordance with sub-paragraph a above, by way of speech, e-mail, text message or other communication format. In the case, however, of a caller who has accessed the service by way of a voice call, the service provider must provide the caller with the option of being provided with the number by way of speech (whether that speech is spoken by a live operator or generated electronically).
  3. Where a DQ service offers callers the service of call completion (connecting the caller to the number without his having to dial it), the service provider must, before making the onward connection, first inform the caller of the cost of that service and allow him to choose whether or not to agree to the connection being made. The caller must be provided with a clear opportunity to decline call completion and to instead be provided with the number (in accordance with sub-paragraph a above) unless legal or regulatory obligations prevent the number from being so provided.
  4. DQ services must not offer call completion or connection to:
    1. any premium rate service which is a chatline service,
    2. any premium rate service which is a sexual entertainment service, or
    3. any individual, business or organisation with whom the DQ service provider has an agreement to share call revenue.
  5. PhonepayPlus may exempt a particular DQ service, or a category or species of DQ services, from any of the obligations or requirements of this paragraph (paragraph 7.8.4) where PhonepayPlus considers it appropriate to do so in order to permit the provision of DQ services in a form, or using a business model, that would not otherwise be reasonably possible and the provision of which would be of net benefit to both competition and consumers. The terms and extent of any such exemption shall be published on PhonepayPlus’ website.


7.8.5     DQ services provided on ‘118’ prefixed telephone numbers are exempt from the restrictions imposed by the following provisions of the Code in respect of the provision of live services:

  1. paragraph 6.3.1a – the provision of pricing information on connection; and
  2. paragraph 6.3.1c and d – concerning the prevention of persons under the age of 18 from calling the service.


7.8.6    A caller to a DQ service who:

  1. in the course of calling that service, provided adequate relevant information to enable identification of the number (assuming that the DQ service provider was complying with paragraphs 7.8.2 and 7.8.3 above), but
  2. was not provided with that number, and
  3. makes a complaint to the provider of the DQ service in relation to those circumstances,

must be offered a refund in respect of the full cost of the call to the DQ service and any subsequent call by which the complaint was made. This is in addition to any obligation that may arise by reason of paragraph 3.3.5.

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7.9     Fundraising and charitable promotions

Service providers should be aware that the scope of such services is limited by legislation relating to charities.

The promotional material for fundraising (whether or not for charitable purposes) and charitable promotions must make clear:

  1. either the total sum per call or the amount per minute which will be paid to the beneficiary,
  2. the identity of the beneficiary,
  3. any restrictions or conditions attached to the contribution to be made to the beneficiary.

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7.10    Pay-for-product services

7.10.1    Definition of pay-for-product services
Pay-for-product services are those, costing more than £1 in total, in which the benefit to the user is either the delivery during or consequent to the use of the service of a product or service (not itself being premium rate content) paid for wholly or in part by the user through a network operator, or the provision during the service of electronic data which the user is able to receive and store and which is not primarily intended for use on the device used for access to the service. Such services are required to conform to the requirements of the Distance Selling Regulations 2000 (2).

(2) Details of the Distance Selling Regulations can be found at http://www.berr.gov.uk/consumers/buying-selling/distance-selling/index.html'

7.10.2     Pay-for-product services do not include products received as part of a subscription service (in respect of which see paragraph 7.12).

7.10.3     Unless permission to do otherwise is specifically granted by PhonepayPlus, service providers must ensure that pay-for-product services:

  1. do not cost more than £30,
  2. include an introductory message giving the likely total cost of the service and adequate information about how the service works,
  3. require access to the service to take place only once to enable delivery of the product,
  4. terminate automatically once the £30 limit has been reached.


7.10.4     The promotional material for pay-for-product services must clearly state:

  1. any costs additional to the cost of the service relating to delivery charges (where applicable),
  2. any necessary information about the arrangements for delivery of any product or service and/or performance of any service.


7.10.5    If a pay-for-product service generally costs more than £5:

  1. the service provider must keep records of the contact details of the service user and the names and dispatch addresses to which any physical product has been sent for a minimum of six months,
  2. the service must require an active confirmation from users that they accept that their personal details and delivery address will be retained and made available in the case of a claim for unauthorised use.


7.10.6     In addition to fulfilling the requirements of paragraph 3.3.5, providers of pay-for-product services must meet all reasonable and valid claims for refunds where the user who ordered the goods or services was not the bill-payer or did not have the bill payer’s permission to use the service.

7.10.7     Pay-for-product services where the product is of a clearly sexual nature are sexual entertainment services. Such services must operate on the designated code(s) for sexual entertainment services.

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7.11    Sexual entertainment services

7.11.1    Definition of sexual entertainment services
Sexual entertainment services are services of a clearly sexual nature or any services for which the associated promotional material indicates, or implies, that the service is of a sexual nature.

7.11.2     Sexual entertainment services, and promotions for them, must not contain references which suggest or imply the involvement of persons under 18 years of age.

7.11.3     Promotions for sexual entertainment services must not appear in media targeted at persons under the age of 18.

7.11.4     Promotions for sexual entertainment services must be in context with the publication or other media in which they appear. Services should be in context with the advertising material promoting them. The content of a service should not be contrary to the reasonable expectations of those responding to the promotion.

7.11.5    Save where the relevant network operator has provided an alternative solution acceptable to PhonepayPlus, all sexual entertainment services must provide a message at the beginning of the service stating that:

  1. the user must be over the age of 18,
  2. the user should be either the bill-payer or have the bill-payer’s permission to call the service,
  3. service details may appear on the phone bill.


7.11.6     In addition, all sexual entertainment services which are not live services must:

  1. cost no more than £30 (unless PhonepayPlus grants specific permission to a service provider to allow a higher maximum charge),
  2. terminate the call automatically once the £30 (or other agreed) limit is reached.


7.11.7     Service providers must ensure that promotions for sexual entertainment services, and the services themselves, are compatible with access control and rating arrangements available for and appropriate to the medium through which they are accessible. Providers of sexual entertainment services which can be accessed by any means at premium rate must ensure that all websites which can be accessed are content-rated with the Internet Content Rating Association (ICRA) or any other rating system that is generally accepted.

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7.12    Subscription services

7.12.1     Definition of subscription services
Subscription services are those which incur a recurring premium rate charge.

7.12.2     It must always be possible for a user to leave a subscription service by using the ‘STOP’ command.

7.12.3    Promotional material must:

  1. clearly indicate that the service is subscription-based. This information should be prominent and plainly visible and/or audible to consumers,
  2. ensure that the terms of use of the subscription service (e.g. whole cost pricing, opt-out information) are clearly visible and/or audible,
  3. advertise the availability of the ‘STOP’ command.


7.12.4    Subscription initiation
Users must be sent a free initial subscription message containing the following information before receiving the premium rate service:

  1. name of service,
  2. confirmation that the service is subscription-based,
  3. what the billing period is (e.g. per day, per week or per month) or, if there is no applicable billing period, the frequency of messages being sent,
  4. the charges for the service and how they will or can arise,
  5. how to leave the service,
  6. service provider contact details.


7.12.5    Subscription reminders
Once a month, or every time a user has spent £20 if that occurs in less than a month, the information required under paragraph 7.12.4 above must be sent free to subscribers.

7.12.6    Subscription termination

  1. After a user has sent a ‘STOP’ command to a service, the service provider must make no further charge for messages.
  2. Users must be free to leave a service at any time and service providers must do nothing to indicate that this is not the case, unless specific permission to do so has been granted by PhonepayPlus.

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