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Xplosion Ltd

Publication Date
5 October 2018
Case Reference
118842
Procedure
Track 2
Adjudicated Party
Xplosion Ltd
Service Type
All games (excluding social)
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 a online games portal subscription services operating under the service names ’Games Unlimited’ and ‘MobyApps’ 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 had 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 online games portal subscription services charged at £4.50 per week.

The Tribunal upheld all of the breaches of the Code raised. The Level 2 provider’s relevant revenue in relation to the Service was £ 318,192.73. The Tribunal considered the case to be Very Serious and imposed a formal reprimand, a fine of £440,000, a prohibition on the Level 2 provider from providing or having any involvement in any 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%