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Adjudication

Publication Date
15 December 2016
Case Reference
72416
Procedure
Track 2
Adjudicated Party
Marketbybrand Ltd
Service Type
Video
Tribunal's final assessment
Very Serious
Sanctions
4.8.2 (b) Sanctions
4.8.3 (d) Sanctions
4.8.2 (i) Sanctions
Breaches raised
Code 12 2.3.3 Consent to charge
Code 13 2.3.3 Fairness
Code 12 2.3.12 (d) i Fairness
Code 13 3.12.5 Specified Service Charges and Durations of Calls
Summary

Between 16 April 2015 and 1 December 2016, the Executive received 347 complaints concerning a glamour video subscription  service "Babes2Mobi" (“the Service”).

The Level 2 provider for the Service was MarketbyBrand Limited (“the Level 2 provider”). The Level 1 providers were Zamano Solutions Limited and Veoo Limited.

Complainants variously alleged that the service charges were unsolicited.

The Executive raised the following potential breaches of the PSA Code of Practice, 12th and 13th Editions (“the Code”)

  1. Rule 2.3.3 – Consent to charge
  2. Rule 2.3.12(d)
  3. Rule 3.12.5 – Subscription spend reminders

The Tribunal upheld the breaches of the Code raised.The Level 2 provider’s revenue in relation to the Service was in Band 1 (£1,000,000 plus). The Tribunal considered the case to be very serious and imposed a formal reprimand, and a total fine of £400,000 comprised of a fine of £250,000 in respect of the breach of rule 2.3.3 and a fine of £150,000 in respect of the breach of rule 2.3.12(d). The Tribunal also imposed a requirement that the Level 2 provider remedy the breaches by (a) ensuring that it has robust verification of each consumer’s consent to be charged before making any other charge to the consumer, including for existing subscribers to the Service and (b) ensuring that all consumers are provided with subscription spend reminders. The Tribunal also imposed a requirement that the Level 2 provider 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 PSA that such refunds have been made.

Administrative charge recommendation: 100%

Click here to view the Adjudication decision