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Xplosion Ltd

Publication Date
5 October 2018
Case Reference
118585
Procedure
Track 2
Adjudicated Party
Xplosion Ltd
Service Type
Video
Tribunal's final assessment
Very Serious
Sanctions
4.8.3 (b) Sanctions
4.8.3 (d) Sanctions
4.8.3 (g) Sanctions
4.8.3 (i) Sanctions
Breaches raised
Code 14 2.3.3 Fairness
Code 14 2.2.1 Transparency and Pricing
Code 14 2.3.1 Fairness
Code 14 3.4.14 (a) Numbers
Summary

The case concerned adult / glamour video portal subscription services operating under the service names ’SexxyMob’, ‘Xcite’ and ‘Xvidland’ on PayForIt (“PFI”) and on shortcode 65065 (used for consumers to send STOP to unsubscribe from the services, and for the sending of free Service initiation and reminder messages) (the “Services”).

The Level 2 provider for the Services was Xplosion Limited (the “Level 2 provider”). The Level 2 provider has been registered with the Phone-paid Services Authority (the “PSA”) since 27 January 2015.

The Level 1 provider for the Services was Dynamic Mobile Billing Limited (“DMB”), formerly Oxygen8 Communications UK Limited.

The Services were stated to be adult / glamour video portal subscription services charged at £4.50 per week.

The Executive had received 82 complaints concerning the Services since 30 August 2016. Complainants variously alleged that the Service charges were unsolicited.

The Executive believed that the Service contravenes the Phone-paid Services Authority (the “PSA”) Code of Practice 14th Edition (the “Code”) and in particular the following Code provisions:

  • Rule 2.3.3 – Consent to charge
  • Rule 2.2.1 – Transparency and pricing
  • Rule 2.3.1 – Fair and equitable treatment
  • Paragraph 3.4.14 (a) – Service registration

The Tribunal upheld all of the breaches of the Code raised. The Level 2 provider’s relevant revenue in relation to the Service was found to be £234,750.44. The Tribunal considered the case to be Very Serious and imposed a formal reprimand, a fine of £350,000, a prohibition on the Level 2 provider from providing or having any involvement in any premium rate service (“PRS”) for a period of 5 years from the date of the Tribunal decision or until payment of the fine and administrative charges, whichever is the later. 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%