GMTech Media OU (Case reference: 196267)
| Published date | 25 November 2024 |
| Year | 2024 |
| Case Number | 196267 |
| Adjudicated Party | GMTech Media OU |
Tribunal meeting number 303
Case reference:196267
Merchant provider:GMTech Media OU
Type of service:Horoscope/Astrology Service
Network operator:TalkTalk Ltd (PRNs) and Dynamic Mobile BillingLtd (PSMS)
Intermediary: Square1 CommunicationsLimited
This case was brought againstGMTech Media OU(“the Merchant”) under Paragraph 5.4 of the
15thEdition of the Code of Practice (“Code 15”).
Background and investigation
1.This case concerns the Astroway (3+3) horoscope/astrology service provided by the
Merchant (“the Service”).
2.The Merchant is registered in Estonia and provided the Astroway (3+3)
horoscope/astrology service to UK consumers using 090 premium rate numbers (PRN)
(Number range 09023128000-99 and 09023128500-99, and premium SMS (PSMS)
85202. The Intermediary was Square1 Communications Limited, and the Network
Operators were TalkTalk Ltd (Premium rate numbers) and Dynamic Mobile Billing Ltd
(Premium SMS).
3.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.
4.The investigation relates to the period between 29 April 2022 (when the Service
commenced under the Merchant) until 10 November 2023 when the Service was
disconnected by the Intermediary Square1 Communications.
Previous relevant cases
5.The Merchant has not previously been the subject of a PSA Engagement or
Enforcement case.
Alleged breaches of the Code
6.The PSA sent an enforcement notice to the Merchant on3 September2024, in which
the following breaches of Code 15 were raised:
•Code 15 - 3.2.1 – Transparency and pricing
•Code 15 - 3.3.1 - Fairness
•Code 15 - 3.3.2 – Misleading
•Code 15 - 3.8.1 – Registration.
Preliminary issues
7.The Tribunal was satisfied that service of the Enforcement Notice had been complied
with.In particular, the Tribunal noted that emails with the Enforcement Notice and
annexes had been downloaded by the Merchant, butthe Merchant had chosen not to
respond to the Enforcement Notice.
8.The Tribunal also noted that delivery of hard copies by UPS service was not successful,
but the last registered address had been used. Overall, the Tribunal wassatisfied that
the enforcement notice had been served on the Merchantand that the Merchant had
been notified of the Tribunal hearing. The Tribunal was satisfied that, in all the
circumstances, it was fair to proceed with the hearing.
Submissions and conclusions
9.The PSA submissions were that the Merchant had committed four breaches of Code
15. The PSA presentedevidence to theTribunal to substantiate each of the alleged
breaches.
Alleged breach 1
Code 15 - Paragraph 3.2.1Transparency and pricing
“During any written, spoken or other form of promotion o f a PRS, the cost of the service must be
provided before any purchase is made. The cost of the PR S must be prominent, clear, legible, visible
and proximate to the phone number, shortcode, button or other means by which a ch arge may be
triggered.”
10.The PSA asserted that the Merchant had breached Paragraph 3.2.1 of Code 15
between 29 April 2022 and10 November 2023as it failed to display the price in a
prominent manner.
11.Paragraph 3.2.1 of the Code provides that the cost of the service must be provided
before any purchase is made and must be prominent, clear, legible, visible and
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