2 Network operators

2.1     General responsibilities (including funding)
2.2     Data protection
2.3     Network operators' due diligence requirements
2.4     Number exportation and control
2.5     Specific obligations
2.6     Network operator non-compliance

2.1     General responsibilities (including funding)

2.1.1     Network operators must ensure that PhonepayPlus regulation is satisfactorily maintained by:

1. carrying out their own obligations under this Code promptly and effectively,
2. aking all reasonable steps to prevent the evasion or undermining of the regulation of premium rate services.

2.1.2     Network operators, prior to or without any delay following commencement of any premium rate service, must supply PhonepayPlus with such information as it may require:

1. to show that they meet the criteria necessary to be recognised as a network operator for the purposes of this Code,
2.  to ensure effective identification of and communication with them and their responsible officers, which will include:
1. a fully functioning active address within the UK,
2. the name of the person responsible for the day-to-day operation of the network operator’s premium rate business,
3. phone and fax numbers and e-mail addresses for the network operator enabling contact at all necessary times.

Where any of the information provided to PhonepayPlus under this paragraph changes, network operators must provide PhonepayPlus with the changed information without any delay.

2.1.3     Network operators must have regard to and comply with the funding provisions which are set out in Annex 1 to Part 2 of this Code.

2.1.4     Network operators must respond without any delay to PhonepayPlus communications. If PhonepayPlus specifies a time period for response, they must adhere to it.

2.1.5     Any direction given by PhonepayPlus shall be effective if sent in writing to the postal address, fax number or the e-mail address provided by the network operator. Directions will state clearly the action required by the network operator and the time within which such action must be taken. In the case of post, delivery is presumed to have taken place on the first working day following posting.

2.1.6     Network operators who also operate as service providers are responsible for the application to themselves (or the relevant part of themselves) of the provisions in this Code relating to service providers as though those provisions were being applied to third party service providers.

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2.2     Data protection

2.2.1     Network operators must make a notification to the Office of the Information Commissioner under the Data Protection Act 1998 and must, in their notification:

1. disclose PhonepayPlus as a potential recipient of personal data,
2. state that data collected from service users may be used by PhonepayPlus for regulatory purposes.

2.2.2     Network operators must not give any undertaking to service users, suppliers, service providers, information providers or others which could preclude any information being given to PhonepayPlus in confidence.

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2.3     Network operators’ due diligence requirements

2.3.1     Before making their network and/or services available to service providers for premium rate services, network operators must (unless PhonepayPlus waives any such requirement in writing):

1. collect and maintain such information as PhonepayPlus may require them to hold in respect of their service providers in order to ensure effective identification of and communication with service providers, and in every case must collect and maintain the following information:
1. the full address where their service providers are located and (if different) the address within the UK where they may be contacted,
2. in the case of a limited company, its registered number and the name and home address of each of the directors,
3. the name of the director with primary responsibility for premium rate services,
4. the name of the person responsible for the day-to-day operation of each service provider’s premium rate services,
5. phone and fax numbers and e-mail addresses for their service providers and the individuals named under iii and iv above, enabling contact to be made with any of them at all necessary times.
2. obtain satisfactory evidence that their service providers have sufficient financial and other resources necessary to discharge their obligations under this Code in the light of their intended premium rate activities,
3. make sufficient inquiry so as to satisfy themselves fully that the information supplied to them by service providers is accurate. In undertaking these inquiries, network operators must obtain clear evidence, in particular in respect of the identity of the people named in accordance with paragraph 2.3.1a iii and iv above,
4. retain the information collected and the records of the inquiries made and responses to those inquiries and a copy of all evidence obtained, and make those records and copies available to PhonepayPlus upon being directed by PhonepayPlus to do so,
5. bring this Code to the attention of their service providers and retain a copy of the registration form lodged by each service provider with PhonepayPlus and the acknowledgement of receipt by PhonepayPlus (see paragraph 3.2.1),
6. satisfy themselves, by taking reasonable measures, that their service providers have in place adequate customer service and refund mechanisms including a non-premium rate UK customer service phone number in order to enable service providers to discharge their obligations under the Code.

2.3.2     In the contract with any service provider under which network operators make their network and/or services available to a service provider, network operators must:

1. require that the service provider complies with this Code (or such successor versions as may from time to time be issued) and any directions that are made by PhonepayPlus in accordance with it,
2.  include provision(s), pursuant to Section 1 of the Contracts (Rights of Third Parties) Act 1999, so that PhonepayPlus may directly enforce the relevant term(s) of that contract.

2.3.3     Network operators shall not make, and shall withhold, payments to service providers for a period of at least 30 days after the use of the premium rate service to which the payments relate.

2.3.4    For a period of 10 months after the coming into force of this Code, paragraph 2.3.1 above shall not apply so as to require network operators to do the things set out in paragraph 2.3.1 in relation     to any service provider to whom the network has made its     network and/or services available not less than eight weeks prior     to this Code coming into force.

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2.4     Number exportation and control

2.4.1     Network operators must maintain a record of numbers which, having been allocated or exported to them, are exported by them to another network operator or over which they cease to have control for any reason.

2.4.2     Network operators must supply to PhonepayPlus on request without any delay in relation to any number to which paragraph 2.4.1 applies, the name of the network operator to whom the number has been exported or who has control over it and, if known, the name of the service provider.

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2.5    Specific obligations

2.5.1     When directed to do so by PhonepayPlus, network operators shall provide to PhonepayPlus within such time as it shall specify such information (including copy documents) as it requires in relation to any complaint received or investigation being carried out by it. Such information may include, but is not limited to:

1. service provider details and copies of contracts with service providers and/or any agents or other parties concerned in the process of providing the network operator’s network facilities or other communications services to service providers,
2. the number and length of calls to or from any number,
3. information concerning historic traffic levels to services of the relevant service providers,
4. the times when calls were made,
5. all details of outpayments including amounts, bank details and dates of payment to service providers (which may include such proof of payment as PhonepayPlus shall specify),
6. details of other numbers held by relevant service providers.

2.5.2     When directed to do so by PhonepayPlus, network operators shall immediately:

1. terminate access to such premium rate services and/or numbers as PhonepayPlus may specify,
2. terminate access to all numbers that are allocated to any specified service provider,
3. terminate access to some or all numbers over which a specified premium rate service or type of service may be operated,
4. withhold such an amount of money as PhonepayPlus may require out of monies payable by the network operator to a specified service provider until permitted by PhonepayPlus to do otherwise, or withhold some or all money payable to a specified service provider in respect of certain numbers or premium rate services (as may be specified) until permitted by PhonepayPlus to do otherwise, or withhold all money payable to a specified service provider until informed by PhonepayPlus that it may do otherwise,
5. pay over to PhonepayPlus such an amount of any money withheld pursuant to paragraph 2.3.3 or to sub-paragraph 2.5.2d above as PhonepayPlus may require in order to satisfy outstanding fines and/or administrative charges, such payment to be made within 30 days of such direction,
6. pay refunds on behalf of service providers when so required by PhonepayPlus in accordance with paragraph 8.7.6.

2.5.3     Network operators must not contract to provide services to any service provider and/or associated individual in respect of whom a sanction, which has been published, has been imposed under paragraphs 8.7.2f or 8.7.2g so as to enable the service provider and/or associated individual to operate in breach of that sanction.

2.5.4     Network operators that pay money to a service provider contrary to paragraph 2.3.3 or after receipt of a direction by PhonepayPlus to withhold money from that service provider may be directed by PhonepayPlus to pay to it an amount no more than the amount of the fines, administrative charges or refunds that have not been paid by or on behalf of the service provider when due, provided that the amount payable by the network operator to PhonepayPlus is no more than the amount that should have been withheld by the network operator in accordance with the Code or as directed under the Code.

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2.6    Network operator non-compliance

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.
   

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