MobBill (UK) Ltd

Publication Date
20 March 2020
Case Reference
145440
Procedure
Track 2
Adjudicated Party
MobBill (UK) Ltd
Service Type
No service, bill only
Tribunal's final assessment
Serious
Sanctions
4.8.3 (d) Sanctions
4.8.3 (b) Sanctions
Breaches raised
Code 14 4.2.2 Obligations of Providers of premium rate services
Code 14 4.2.2 Obligations of Providers of premium rate services
Code 14 3.1.3 General Responsibilities
Summary

This case was brought against the Level 1 provider under Paragraph 4.5 of the 14th edition of the Code of Practice.

The case concerned the Level 1 provider MobBill (UK) Limited (the “Level 1 provider”). The Level 1 provider had been registered with the Phone-paid Services Authority (“PSA”) since 6 March 2013. Previously the Level 1 provider had operated as a Level 2 provider for an adult subscription service.

On 1 August 2015, the Level 1 provider signed an agreement with Hutchison 3G UK Limited, that operated under the brand name Three (the “Mobile Network Operator”). The agreement permitted MobBill (UK) Limited to become a Level 1 provider. Consequently MobBill (UK) Limited became a payment intermediary for merchant services to charge consumers by charge to direct billing.

The Tribunal found MobBill (UK) Ltd had committed three breaches of regulation, one by not fulfilling its due diligence, risk assessment and control obligations, and two by providing false information to the PSA about its revenue and complaints data.

Having regard to all the circumstances of the case, the Tribunal decided to impose the following sanctions:

• a formal reprimand
• a fine of £400,000.

Administrative charge recommendation: 100%