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Adjudication

Publication Date
16 August 2017
Case Reference
11756
Procedure
Track 2
Adjudicated Party
Intrugo Ltd
Service Type
Video
Tribunal's final assessment
Very Serious
Sanctions
4.8.2 (d) Sanctions
4.8.2 (b) Sanctions
4.8.2 (i) Sanctions
4.8.2 (g) Sanctions
Breaches raised
Code 14 4.8.6 (b) Sanctions
Summary

A service provided by the Level 2 provider Intrugo Limited (the “Level 2 provider”) was the subject of a Phone-paid Services Authority (“PSA”) investigation and adjudication by consent (case reference: 71971), which resulted in sanctions being agreed between the parties and imposed by a Tribunal on 17 September 2016. The sanctions imposed by the Tribunal were a formal reprimand, a fine of £250,000, 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; and a requirement that the Level 2 provider 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 the PSA that such refunds have been made. In addition, an administrative charge of £19,906.11 was imposed.

The Level 2 provider failed to comply with the remedy the breach sanction.

The Executive raised the following potential breaches of the PSA Code of Practice (14th Edition) (“the Code”)

  • Paragraph 4.8.6(b) – Failure to comply with a sanction

The Tribunal upheld the breach of the Code raised. The Tribunal considered the case to be very serious and imposed a formal reprimand, a fine of £250,000 and a prohibition on the Level 2 provider from providing, or having any involvement in, any premium rate service for a period of five years, starting from the date of publication of this decision. 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 the PSA that such refunds have been made.

Administrative charge recommendation: 100%

Click here to view the Adjudication decision