Phone-paid Services Authority

Procedure Type

Latest documents

Telecom2 (Case reference: 191951)
The Phone-Paid Services Authority (‘PSA’) opened an investigation into Telecom2 Limited (‘Telecom2’) in August 2021.The investigation into Telecom2 concerned the adequacy of its due diligence, risk assessment and control (“DDRAC”) measures over a 7-year period. The period commenced when the 14th Edition of the Code of practice (“Code 14”) was in force and continued for some time after Code 15 came into force. During the investigation a second breach was raised due to Telecom2’s failure to fully respond to a direction from the PSA.The parties agreed that as the case severity overall is very serious the following sanctions should be imposed:formal reprimanda total fine of £255,000 comprised of the following amounts for each breach: Breach 1 (Risk assessment and Control pursuant to paragraph 3.1.3 (a) and (b) of Code 14 and paragraph 3.9.2 of Code 15) £180,000. Breach 2 (failing to provide information pursuant to 4.2.2. of Code 14) £75,000.a compliance audit to be carried out by a third party approved by the PSA and to a standard prescribed by the PSA, the costs of such audit to be paid by the Relevant Party. The audit must be completed and the recommendations implemented within 12 months. Telecom2 agrees not to resume its ICSS services until completion of the audit.Telecom2 to pay the final administration fee £13,977.50 in full.Telecom2 consent order signed
Kalastia Consulting Ltd (Case reference: CAS-196596-J1X9T1)
The Phone-Paid Services Authority (PSA’) opened a breach of sanctions case against Kalastia Consulting Limited (‘Kalastia’) on the 3 November 2023.On 26 July 2024, the Tribunal hearing for the breach of sanctions case (‘the case’) was adjourned to enable certain matters to be removed from the PSA’s Enforcement Notice.Following a subsequent review of the case, the PSA decided to change its initial recommendations in relation to it and requested that the Tribunal gives permission to withdraw the case.On 17 October 2024, the Tribunal granted permission for the case to be withdrawn.This does not affect the sanctions agreed through settlement as set out in the Consent Order dated 5 June 2023, all of which remain in place (case reference 191534) having been agreed and imposed prior to the case.
GMTech Media OU (Case reference: 196267)
This case was brought against GMTech Media OU (“the Merchant”) under Paragraph 5.4 of the 15th Edition of the Code of Practice (“Code 15”).The horoscope/astrology service was advertised as a personalised horoscope service, asking users a list of personal questions including their date of birth, and then asking them to call an 09 premium rate number to hear their personalised horoscope. The Service was promoted via different marketing and social media platforms including Google ads, Facebook, Instagram and TikTok. The Service started operating under the Merchant on 29 April 2022. Prior to this date, the Service was provided by a company registered in Estonia which, although part of the same umbrella group, is a separate legal entity to the Merchant and fell outside the scope of the PSA’s investigation.The investigation therefore relates to the period between 29 April 2022 until 10 November 2023 when the Service was disconnected by the Intermediary Square1 Communications.This enforcement case was opened on 10 November 2023 and concerns transparency and pricing, fairness, misleading promotional material and registration.Following completion of our enquiries and investigations into this matter the PSA asserts that the Merchant has failed to comply with the Code in regard to pricing prominence, ensuring the service was fair and its promotion was not misleading to consumers, and complying with registration requirements.PSA published settlement and The Tribunal concluded that the seriousness of the case should be regarded overall as very serious.Sanctions imposedHaving regard to all the circumstances of the case, the Tribunal decided to impose the following sanctions:a formal reprimandthe prohibition of the Merchant from any involvement in any PRS or promotion of PRS for a period of five years from the date of publicationa requirement that the Merchant refund all consumers who claim a refund for the full amount spent by them on the Service, within 28 days of their claim, save where there is good cause to believe such claims are not valid, and provide evidence to the PSA that such refunds have been madea fine of £650,000.Administrative charge recommendation: 100%
Stripey Giraffe Limited (Case reference: CAS-194493-X5H9D6)
The investigation into Stripey Giraffe concerned a number of potential breaches of Code 15. The period of the breaches commenced when the 14th Edition of the Code of Practice ("Code 14") was in force and continued after Code 15 (collectively the "Code") came into force.Stripey Giraffe is a Merchant Provider based in the UK and provides the "Stripey Offers" service ("Service") to UK consumers using short code 88222. Stripey Giraffe first registered with the PSA on 17 July 2018, and the Service itself was registered with the Executive on 22 October 2018.The "Stripey Offers" service was charged at £1.50 per message received, with a maximum of three messages received per week. The Respondent contracted with SB7 Mobile Ltd (the "Intermediary Provider") who in turn, during the period under investigation, contracted with Dynamic Mobile Billing Limited.The Service is promoted predominantly through Google Display Network Advertising, and to a lesser extent through co-registration site partners.The PSA became aware of potential breaches of the Code through complaints received from consumers. Following initial service monitoring the PSA considered it necessary to take Enforcement Action against Stripey Giraffe.During the investigation, the PSA relied on evidence from monitoring the service, information supplied by Stripey Giraffe and its intermediary SB7 and consumer complaints. To date the PSA has received 503 complaints from consumers relating to this service. The issues identified in these complaints were reflected in reviews observed on an external review website.Having considered this evidence, an Enforcement Notice was issued to Stripey Giraffe in December 2023.The parties agreed that the case severity is overall “serious”, and that the following sanctions should be imposed:total fine of £275,000refunds to all consumers who apply, for the full amount spent by them for the servicecompliance advice on future promotions to be sought and implemented to the satisfaction of either the PSA or Ofcom prior to re-starting the service.The Parties also agreed that Stripey Giraffe will pay a fixed amount towards the PSA's administrative charge in the sum of £100,000 inclusive of VAT, and that both the total fine and the administrative charge will be paid within 30 days of publication of the consent order and this statement.PSA v Stripey GiraffeConsent Order
Adrian Smith (Case reference: 193951)
This case was brought against an associated individual under paragraph 5.8.12 of the 15th edition of the Code of Practice.The Tribunal was asked to consider imposing a prohibition against Mr Adrian Smith pursuant to paragraph 5.8.5(g) of the Code.The case related to a previous adjudication against Moblix Media Limited, the merchant provider (case reference: 189274). The case involved a subscription alert service and was adjudicated on 24 November 2021. The Tribunal that considered the case on 24 November 2021 recommended the prohibition of Mr Smith, a director of the Merchant provider and contact on the Phone-paid Services Authority’s Registration Scheme for the Merchant provider.The Tribunal decided (unanimously) to prohibit Mr Smith from providing, or having any involvement in, any premium rate service in the UK, and to do so for a period of five years, taking into consideration the severity of the breaches upheld against the Provider and the need to protect the public from harm in the future.Administrative charge recommendation: 100%.
Kalastia Consulting Limited (Case reference: 191534)
The Phone-Paid Services Authority (‘PSA’) opened an investigation into Kalastia Consulting Limited (‘Kalastia’) on the 27 April 2021. Kalastia contracted with a number of merchant providers who provided subscription-based alerts service.Between January 2018 and 14 November 2020, the PSA received a combined total of 3,047 complaints across the relevant merchant providers. A number of investigations were opened in respect of the merchant providers, some of which resulted in Tribunal adjudications which upheld breaches.The PSA noted that while all of the merchant providers were separate legal entities who operated different premium rate services, the nature of the complaints being received as well as the nature of the potential non-compliance as evidenced within those complaints raised concerns regarding the level of due diligence, risk assessment and control that was being performed by Kalastia.The parties agreed that the following sanctions should therefore be imposed:formal reprimand under paragraph 5.8.5(b) of Code 15a prohibition on Kalastia Consulting Limited from providing or having any involvement in PRS or promotion for five years and/or until all sanctions have been complied with, whichever is the later under paragraph 5.8.5(g) of Code 15a fine of £350,000 under paragraph 5.8.5(d) of the Code 15 comprised of the following amounts for each breach:- Breach 1 (failure to disclose information pursuant to paragraph 4.2.3 of the 14th Edition of the Code of Practice) - £150,000- Breach 2 (concealing and providing false and misleading information pursuant to 4.2.2. of the 14th Edition of the Code of Practice) - £200,000the parties also agree that Kalastia is to pay the PSA’s administrative costs in the sum of £8,225.Kalastia Consulting Limited consent order signed
Ben Dewhurst (Case reference: 195457)
This case was brought against an associated individual under paragraph 5.8.12 of the 15th edition of the Code of Practice.The Tribunal was asked to consider imposing a prohibition against Mr Ben Dewhurst pursuant to paragraph 5.8.5(g) of the Code.The case related to a previous adjudication against Connect You Limited (the “Merchant provider”) (case reference 188306). The case related to an Information, Connection and Signposting Service (“ICSS”) provided by the Merchant (“the Service”) and was adjudicated on 17 March 2023. The Tribunal that considered the case on 17 March 2023 recommended consideration of a prohibition of Mr Dewhurst, a director of the Merchant provider and contact on the Phone-paid Services Authority’s (“PSA”) Registration Scheme for the Merchant provider since it registered on 16 December 2019.The Tribunal decided to prohibit Mr Dewhurst from providing, or having any involvement in, any premium rate service in the UK. However, the Tribunal determined that a period of three years was an appropriate and proportionate length for the prohibition taking into consideration the sanction imposed on 17 March 2023 in relation to the prohibition imposed on the Merchant and the actions of Mr Dewhurst. The Tribunal accepted that during the course of the investigation he had, at times, attempted to achieve compliance, albeit incompletely, and engaged with the PSA to this end. This had to be balanced against the severity of the breaches and the limited value the Service offered to consumers.Administrative charge recommendation: 100%.