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Adjudication

Publication Date
20 February 2017
Case Reference
72403
Procedure
Track 2
Adjudicated Party
Venture247 Limited
Service Type
Video
Tribunal's final assessment
Very Serious
Sanctions
4.8.3 (b) Sanctions
4.8.3 (d) Sanctions
4.8.3 (a) Sanctions
4.8.3 (i) Sanctions
Breaches raised
Code 12 4.2.4 Investigations
Code 12 2.3.3 Consent to charge
Code 13 4.2.4 Investigations
Code 13 2.3.3 Fairness
Summary

Between 19 April 2015 and 19 December 2016, the Executive received 70 complaints concerning an adult video subscription service, charged at £3 per week(“the Service”). The Level 2 provider for the Service was Venture247 Limited. The Level 1 provider for Service shortcode 89320 was mGage Europe Limited. The Level 1 provider for Service shortcodes 69988 and 89225 was Veoo Ltd. 

Complainants variously alleged that they had not consented to be charged for the Service.

The Executive raised the following potential breaches of the Phone-paid Services Authority Code of Practice (“the Code”)

  • Paragraph 4.2.4 – Provision of false / misleading information
  • Rule 2.3.3 – Consent to charge

The Tribunal upheld the breaches of the Code raised.  The Level 2 provider’s revenue in relation to the Service was in Band 2 (£500,000 to £999,999). The Tribunal considered the case to be very serious and imposed a formal reprimand, a fine of £350,000, and a requirement that the Level 2 provider remedy the breach by ensuring that it has robust verification of each consumer’s consent to be charged before making any further charge to the consumer, including for existing subscribers to the Service. 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 Phone-paid Services Authority that such refunds have been made.   

Administrative charge recommendation:                                                                                                100%

Click here to view the Adjudication decision