Adrian Smith (Case reference: 193951)
| Case Number | 193951 |
| Published date | 17 May 2023 |
| Year | 2023 |
| Procedure Type | Prohibition (Phone-Paid Services Authority) |
| Adjudicated Party | Adrian Smith |
1
Tribunal meeting number 298
Case reference:193951
Case:Prohibition of an associated individual
This case was brought against an associated individual under paragraph 5.8.12 of the 15th
edition of the Code of Practice (“the Code”).
The Tribunal was asked to consider imposing a prohibition against Mr Adrian Smith pursuant
to paragraph 5.8.5(g) of the Code.
Background
1.The case related to a previous adjudication againstMoblix 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 (“PSA”)
Registration Scheme for the Merchant provider.
2.The Merchant provider operated a text alert subscription service called “f(b) Friday”
that operated on shortcode 84222 (the “Service”). The PSAreceived a total of 311
complaints concerning the Service from May 2018. Of the 311 complaints, 220
complaints were linked to a technical issue which resulted in 25,770 consumers being
overcharged on 25 September 2020 and 91 complaints were received prior to the
technical issue, alleging that they had not signed up to the Service or not agreed to
be charged for the Service.
3.The Service operated on all mobile network operators.
4.The Intermediary provider, Tap2Bill Limited, indicated that the Service had been in
operation for nearly eight years and the Merchant provider confirmed that the
Service was suspended on 25 September 2020.
5.On 24 November 2021, the Tribunal considered whether the Service operated by the
Merchant provider breached the Code. The Tribunal upheld the following breaches:
•Breach 1 Rule 2.3.3 – Consent to charge
•Breach 2 Rule 2.3.3 – Consent to charge (in relation to a technical issue
occurring on 25 September 2020)
•Paragraph 4.2.3 – Failure to disclose in response to a direction
•Paragraph 4.2.2 – Provision of false or misleading information
6.The Tribunal considered the case to be very serious overall and imposed the
following sanctions:
•a formal reprimand
•a prohibition on the Provider from providing, or having any involvement in, any
premium rate service for a period of five years, starting from the date of the
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