Veoo Ltd (Case reference: 112236)
| Case Number | 112236 |
| Year | 2019 |
| Published date | 11 September 2019 |
| Adjudicated Party | Veoo Ltd |
| Procedure Type | Oral Hearing (Phone-Paid Services Authority) |
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IN THE MATTER OF AN ORAL HEARING Case Ref: 112236
B E T W E E N:
PHONE-PAID SERVICES AUTHORITY LTD
Executive
-and-
VEOO LTD
Respondent
_____________________________________
ORAL HEARING DECISION
_____________________________________
Tribunal members:
Linda Lee (chair)
Dame Elizabeth Neville
Elisabeth Ribbans
DECISION
Upon an application for an oral hearing by Veoo Ltd (“Veoo”) under paragraph 3.1(a) of
Annex 3 of the Phone-Paid Services Authority Code of Practice 2016 (14th edition) (“the
Code”):
1. Veoo is held to have committed eight breaches of paragraph 3.1.3 of the Code,
including five of those breaches having been committed knowingly, and it is also held
to have committed three breaches of paragraph 4.2.2 of the Code.
2. The following sanctions are imposed upon Veoo:
a) A fine of £600,000;
b) A formal reprimand;
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c) A prohibition on the provision of premium rate services by Veoo for a period of
two years; and
d) A mutually agreed compliance audit, which must be completed prior to Veoo’s
recommencement of the provision of premium rate services.
3. No naming process is commenced in relation to the directors of Veoo.
4. The Tribunal recommends the imposition of the administrative charge on Veoo on a
full costs recovery basis, without percentage reduction, but subject to the principle
that only costs reasonably and proportionately incurred should be recovered.
REASONS
Introduction
5. The oral hearing relating to this case took place on 30 and 31 May 2019 (“the
Hearing”). At the Hearing, the Phone-Paid Services Authority Limited (“the
Executive”) was represented by Mr Tristan Jones of counsel, and Veoo was
represented by Ms Anneliese Blackwood of counsel. The clerk to the Tribunal was Mr
Adam Taylor of counsel.
6. Oral evidence was given by a number of witnesses across the two days, and their
evidence is addressed further below. Furthermore, the Tribunal adjudicated on two
separate procedural applications that were made during the course of the Hearing,
while stating that full reasons would be provided in due course, and those reasons are
also set out herein.
7. A more detailed factual background is set out below, but as to the nature of the case:
a) Veoo is a level 1 provider. In late 2014 through to early 2015, Veoo as level 1
provider migrated eight premium rate level 2 services (together, “the L2
Providers”) onto its platform. These L2 Providers were the subjects of separate
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PSA Tribunal adjudications between 17 September 2015 and 20 September 2017,
relating principally to a lack of consent to charge.
b) Veoo admits breaches of paragraph 3.1.3 of the Code relating to the need for due
diligence and risk assessment of its clients, but it denies that it did so knowingly.
c) Veoo also denies that it breached paragraph 4.2.2 of the Code, relating to the
provision of false or misleading information to the Executive. The Executive
argues that Veoo did not, as it stated to the Executive, submit ‘random’ mobile
telephone numbers (known as “MSISDNs”) for verification.
d) Factual issues explored at the Hearing and to be considered by the Tribunal
include:
i. The ‘on-boarding’ of the eight L2 Providers by Veoo, including Veoo’s
processes for verification of MSISDNs;
ii. The random or deliberate nature of the selection of particular MSISDN
numbers by Veoo for provision to third-party verification services, and in
particular Veoo’s provision of MSISDNs to the third-party verifier
GoVerifyIt (“GVI”);
iii. The validity and/or accuracy of the third-party verification data;
iv. The nature of Veoo’s response to adjudication decisions by the Executive
in relation to the L2 Providers.
v. The steps taken by Veoo regarding compliance.
Factual Background
Premium rate services and level 1/2 providers
8. A level 1 provider provides a platform enabling level 2 providers to provide relevant
premium rate services (“PRS”) to consumers, including via a shared 5-digit shortcode.
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