Taptronic FZC

Publication Date
8 September 2021
Case Reference
152741
Procedure
Track 2
Adjudicated Party
Taptronic FZC
Service Type
Information
Tribunal's final assessment
Very Serious
Sanctions
4.8.2 (b) Sanctions
4.8.3 (e) Sanctions
4.8.2 (g) Sanctions
4.8.2 (i) Sanctions
4.8.3 (d) Sanctions
Breaches raised
Code 14 2.3.1 Fairness
Code 14 2.3.3 Fairness
Code 14 2.6.1 Complaint handling
Code 14 3.4.14 (a) Numbers
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 4.2.2 Obligations of Providers of premium rate services
Summary

This case was brought against Taptronic FZC, ‘the Level 2 provider’ under Paragraph 4.5 of the 14th Edition of the Code of Practice. 

This case concerned a subscription alerts service called Fitguru (‘the Service’), which provided consumers with fitness training and nutritional videos, which included exercise plans, training videos and video recipes for healthy eating. 

The Executive received 410 complaints from members of the public between May 2018 and February 2020. The first complaint about the Service was received on 2 May 2018. Complainants variously alleged that they had not signed up to nor agreed to be charged by the Level 2 provider and that they were unable to successfully complain to the Level 2 provider.  

The Tribunal concluded that the seriousness of the case should be regarded overall as very serious

Sanctions imposed:

  • formal reprimand 
  • a prohibition on the Level 2 provider from providing, or having any involvement in, any premium rate service for a period of six years, starting from the date of publication of the Tribunal decision, or until all sanctions imposed have been complied with, whichever is the later
  • a requirement that the access to the Fitguru service is barred for a period of six years
  • 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 PSA that such refunds have been made 
  • a fine of £1,250,000 comprised of:
    Breach 1 Rule 2.3.1 - £100,000
    Breach 2 Rule 2.3.3 - £250,000
    Breach 3 Rule 2.6.1 - £200,000
    Breach 4 Paragraph 3.4.14 - £200,000
    Breach 5 Paragraph 4.2.2 - £250,000
    Breach 7 Paragraph 4.2.2 – £250,000

Administrative charge recommendation: 100%