Notice to Industry: Interim Regulatory Arrangements for Payforit

6 September 2010

Following the PRS Scope review, Ofcom has announced that it will be using the Analytical Framework developed as part of the review to evaluate whether premium rate regulation is appropriate for certain services. One of the services under consideration is Payforit.

Pending the outcome of this review, PhonepayPlus, after consultation with the mobile network operators that developed Payforit, is today issuing a Help Note for industry to provide clarity on how it interprets rules on pricing transparency for services using the Payforit payment mechanism. PhonepayPlus and the mobile network operators have agreed to work together to ensure that Payforit services are compliant with the Trusted Mobile Payment Framework scheme rules as formulated by the mobile networks and the PhonepayPlus Code of Practice. The aim of this co-operation is to reduce market uncertainty around the role of the mobile networks and PhonepayPlus in the regulation of Payforit services, while Ofcom’s review is undertaken. Where minor infringements of the Payforit Scheme rules or the Code of Practice come to light, the mobile network operators will be responsible in the first instance for addressing these with industry providers. However, where significant consumer harm is caused by a failure to meet the requirements of the Code of Practice in relation to the Payforit mechanism, PhonepayPlus reserves the right to take appropriate action under the Code of Practice.  Further information on this notice and compliance advice is available, free of charge and in writing, from the PhonepayPlus Executive.  Click here to read the Help Note on Payforit.