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The Irish Mail announced it had launched a 'campaign to end the mobile phone subscription text rip off' in Ireland and the UK, in an article also published on the Daily Mail's website. According to the tabloid paper, more than 10,000 people complain every year that they are signed up to expensive mobile phone subscription services without their knowledge, often leading to hefty phone bills.
People are signed up to these services when they text a competition number for a chance to win a variety of attractive prizes, including cars, holidays and Apple gadgets. Most users are unaware that they are automatically signed up to these services when they reply to a message on their phone.
Each follow-on text message can cost between €1.50 to €4, which can quickly add up, especially if users don't check their monthly phone bills carefully.
Some companies advertise on TV or sell ringtones or mobile phone wallpapers to encourage people to sign up to their services.
According to the Irish Mail, the telecommunications watchdog ComReg is assessing how to address this problem, possibly by introducing a 'double opt-in' process to subscribe to this type of service.
This measure, which is already a requirement in Germany, was introduced in Britain after similar complaints by consumers.
According to the report, almost 50% of complaints were from customers that deny ever signing up to receive premium rate texts, while others complained they couldn't unsubscribe easily.
Amongst the companies highlighted in the article is Modeva, which runs PrizeClub.ie, and Zamano. The article adds that Zamano has been fined over £200,000 in the UK by the British regulator PhonepayPlus.
In most cases, players are asked to answer simple questions and enter their mobile phone number to enter.
Last year, ComReg sough consultations from interested parties to establish a framework to tackle this problem. This included the introduction of a 'double opt-in' requirement and the prohibition of 'Mobile Terminated' billion (or 'reverse billed SMS'), where users are billed for receiving a message rather than sending one.
Many companies, including Modeva, are said to have opposed a ban, suggesting no changes were needed. Mobile phone company O2 is said to have been in favour of a double opt-in to protect the public. ComReg is expected to make a decision 'in the coming weeks'.
Since 2009, UK law requires that companies first send a free confirmation text to users detailing the costs and full terms and conditions. Users can't be charged until they have replied to the message to confirm their subscription. In addition, companies that want to charge more than £4.50 a week need to seek aproval to obtain a special licence from the regulator.
Read the full article on the Daily Mail website. |
