ComReg has published for consultation a draft Code of Practice for Premium Rate Services (“PRS”). ComReg took over responsibility for regulating PRS during the summer of 2010 following the enactment of the Communications Regulation (Premium Rate Services and Electronic Communications Infrastructure) Act 2010. Once finalised, compliance with the Code of Practice will be a condition of any PRS licence.
The new Code, if adopted, will be legally binding and will impose significant additional obligations on PRS providers which are not present in the current, non-binding, Code of Practice. In particular, the new Code seeks to ensure that consumers are better informed about the amounts and frequency of the costs associated with PRS.
The draft Code of Practice largely reproduces the existing Code’s general provisions applicable to all PRS providers in respect of data protection and requirements in relation to decency, honesty, the avoidance of harm and due diligence. Additional obligations are imposed on PRS providers to ensure that their contractual partners, for the purposes of promotion or providing PRS, are made aware of ComReg’s role in the regulation of PRS, the licensing requirement and the requirement to adhere to the new Code of Practice.
The draft Code also outlines the minimum requirements to be observed in relation to different forms of advertising and price information, as well as the use of the term “free”. These requirements are outlined in more detail than in the existing Code of Practice.
Further requirements are outlined in relation to some specific categories of PRS, namely adult entertainment services, chat line or dating services, competitions, live entertainment services, children’s services and services for the benefit of charitable organisations.
In relation to the actual provision of PRS, the draft Code of Practice outlines minimum requirements for subscription request/confirmation messages, expenditure update messages and clarification messages upon cancellation of subscription. The draft Code stipulates specific formats which are to be followed in relation to these messages.
The deadline for response to the consultation paper is 21 January 2011.
