TCS Combined Solutions Limited (Case reference: 150301)
| Case Number | 150301 |
| Year | 2021 |
| Published date | 07 January 2021 |
| Adjudicated Party | TCS Combined Solutions Limited |
| Procedure Type | Oral Hearing (Phone-Paid Services Authority) |
1
Case Ref: 150301
BETWEEN:
PHONE-PAID SERVICES AUTHORITY LIMITED (‘PSA’)
Executive
V
TCS COMBINED SOLUTIONS LTD
Respondent
ORAL HEARING DECISION
___________________________________________________________________________
Oral Hearing Tribunal: Professor Ian Walden (Chair)
Mr Peter Wrench
Mr Martin Wrigley
Ms Jessica Boyd for the Executive
Ms Fenella Morris QC for the Respondent
Upon an application for an oral hearing by TCS Combined Solutions Ltd (‘the Respondent’):
1. The Tribunal found the following breaches of the PSA Code of Practice 2016 (14th
Edition) (‘the Code’) proved:
(1) The Respondent charged customers without their consent and failed to provide
evidence which establishes that consent, contrary to paragraph 2.3.3.
(2) The Respondent failed in the course of promoting their Premium Rate Service
('PRS') to ensure that the cost/pricing information was prominent, clearly legible,
visible and proximate to the premium rate telephone number, shortcode or other
means of access to the service, before any purchase is made, contrary to paragraph
2.2.7.
(3) The Respondent failed to issue subscription reminder messages to customers,
specifically spend reminders as required by the PSA Guidance on Subscription
Services (issued under paragraph 3.12.1) contrary to paragraph 3.12.5.
(4) The Respondent knowingly or recklessly omitted to disclose information to the
PSA, contrary to paragraph 4.2.2
2
(5) The Respondent knowingly or recklessly provided false or misleading information
to the PSA, contrary to paragraph 4.2.2
(6) The Respondent failed to disclose to the PSA, when requested, information that was
reasonably likely to have a regulatory benefit in an investigation, when a direction
had been made pursuant to paragraph 4.2.1, contrary to paragraph 4.2.3.
(7) The Respondent failed to renew registration annually or at intervals determined by
the PSA contrary to paragraph 3.4.8.
(8) The Respondent failed to register the Service numbers on the PSA Registration
Scheme within two working days of the Service becoming accessible to consumers
on those numbers, contrary to paragraph 3.4.14(a).
2. The sanctions determined by the Oral Hearing Tribunal (‘the Tribunal’) are:
(i) A Formal Reprimand
(ii) A prohibition on the Respondent from providing, or having any involvement in,
any premium rate service for a period of 3 years, starting from the date of the
publication of the Tribunal decision, or until payment of the fine and the
administrative charges, whichever is the later.
(iii) A requirement that the Respondent must 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 that such claims are not valid,
and provide evidence to the PSA that such refunds have been made.
(iv) A fine of £885,000
3. The Tribunal recommends a naming investigation in relation to Darren Hodes.
Background
4. The Respondent has been registered with the PSA since 6 October 2017.
5. The Respondent is the Level 2 provider of DiscountMeDirect (‘the Service’), a
premium rate subscription service that offers alerts to consumers regarding discount
offers and competitions. The Level 1 providers are Veoo Limited (now in
administration) (on shortcode 80250), Mobivate Limited (on shortcode 87121), and
mGage Europe Limited (on shortcode 78484).
6. The Service commenced operation on 2 March 2018 on shortcode 80250, on 31 March
2018 on shortcode 87121, and thereafter on shortcode 78484. Exactly when the Service
commenced operation on 78484 was a subject of dispute between the parties and is
explored below.
To continue reading
Request your trial