Entertainmob Kommunikation UG (Case reference: 147802)
| Published date | 12 February 2021 |
| Year | 2021 |
| Case Number | 147802 |
| Adjudicated Party | Entertainmob Kommunikation UG |
| Procedure Type | Track 2 (Phone-Paid Services Authority) |
1
Tribunal meeting number 277
Case reference: 147802
Level 2 provider: Entertainmob Kommunikation UG
Type of service: Digital payments
Level 1 provider: Dynamic Mobile Billing Ltd
Network operator: All networks
This case was brought against the Level 2 provider under Paragraph 4.5 of the 14th Edition of
the Code of Practice.
Background and investigation
The case concerned a voucher subscription service called “Voucher Bonanza”, which operated
on a pin opt-in flow using shortcode 60444 (“the Service”). The Level 2 provider for the Service
was Entertainmob Kommunikation UG (the “Level 2 provider”). The Service was charged at
£4.50 per month to receive monthly discount voucher codes and sale notifications, for leading
brands and retailers via text message (SMS) to a mobile phone. The Service was registered with
the PSA on 17 January 2018.
The Level 1 provider in respect of the Service was Dynamic Mobile Billing Ltd (the “Level 1
provider”).
The Level 1 and Level 2 providers both stated that the value chain consisted of a third party
named Kalastia Consulting Limited (the “Supplier”). The Supplier had referred to itself as the
“Sub-L1”. The PSA’s Code of Practice does not recognise “Sub-L1s”. As at the date of this
adjudication, the Executive is of the view that the Supplier is not a Level 1 provider for the
Service and does not fall within the remit of the Code.
The Level 2 provider stated that the Service commenced operation on 23 January 2018. It also
advised that the Service was promoted through co-registration promotion offers for shopping
vouchers between 23 January 2018 and 1 December 2018 and would not be promoted again
in the future. The Level 2 provider also supplied the following information on the Service,
namely that consumers opted in by inputting their mobile MSISDN into a confirmation box
within a promotion. Following this, they received a PIN to their mobile MSISDN which they
were required to enter into a second box to verify their entry into the subscription. From that
point on, consumers received discount voucher codes straight to their mobile MSISDN within a
monthly SMS.
At the beginning of the investigation, the Level 2 provider advised that the Service was
dormant (obtaining no new subscribers but still billing existing subscribers). Subsequently, the
Service was described by other parties in the value chain as being disconnected (gaining no
new subscribers and no longer billing existing subscribers). The Level 1 provider informed the
2
PSA that a request was made to cancel the shortcode on 7 July 2019. The Service was
terminated on 8 August 2019.
The PSA received its first complaint about the Service on 24 January 2018. At the time of this
investigation, the UK had not yet left the EU and the Communications Act (e-Commerce) EU
Exit) Regulations 2020 were not in force. Because the Level 2 provider was based in Germany,
the PSA needed to take additional steps before it could take any measures against it.
Accordingly, on 26 July 2018 the Executive informed the Level 2 provider of its intention to
send a formal referral to Germany. The Executive duly sent an e-Commerce referral to
Germany. On 30 August 2018, the German authority confirmed that it did not intend to take
its own measures against the Level 2 provider. The Executive therefore took derogation as of
30 August 2018 and informed the Level 2 provider of its intention to take its own measures in
The Executive received a total of 132 complaints about the Service, of which 109 of these
complaints were received after obtaining derogation on 30 August 2018. The main complaint
period was between September 2018 and December 2018. The complainants variously alleged
that they did not sign up to nor agree to be charged by the Level 2 provider and were unaware
of the Service or what they were being charged for.
The Executive sent out a questionnaire on 29 October 2019 to the 132 consumers who had
complained about the Service to the PSA. A total of 29 consumers responded to the
questionnaire; 20 provided comprehensive answers and nine consumers could not remember
any details about the matter or provided incomplete responses.
While the Level 2 provider communicated with the Executive for most of the investigation, it
regularly requested extensions to the deadlines set by the Executive. In addition, when
responses were received, they appeared incomplete and did not provide sufficient detail. The
Executive did not receive a response to the sixth direction, about whether consumers had
consented to the charges or not. The Level 2 provider failed to provide this information nor an
explanation for its lack of response.
Apparent breaches of the Code
The Executive sent a Warning Notice to the Level 2 provider in which the following breaches of
the PSA’s Code were raised:
• Rule 2.3.2 – Misleading
• Rule 2.3.3 – Consent to charge
• Paragraph 4.2.3 – Failure to provide information
The Level 2 provider acknowledged receipt of the Warning Notice but stated that the company
was not in operation since December 2019 and there were no staff left to agree or disagree
with the case.
On 28 January 2021, the Tribunal reached a decision on the breaches.
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