RegTel on an ongoing basis receives a large volume of complaints arising from confusing and/or misleading usage of the word "Free" in relation to Premium Rate Services, including services with a recurring charge. The pattern of complaints shows that Consumers find the use of the word "Free" confusing and misleading. The purpose of this Notice is to bring clarity as to how the word "Free" may be used and to reduce the level of confusion and complaints that currently prevails.

Section 6.13 of the Code of Practice States:

This Notice clarifies the way in which this section of the Code of Practice should be understood and applied.

At the end of a free trial period, or where the consumer has already availed of a free entry, and no less than 24 hours prior to commencement of charging, consumers must be sent a free, plain text message advising them:

This message must not contain any WAP or Mobile Internet links.

This Notice comes into effect immediately and all Service Providers are required to amend their services to comply.

I wish to inform you that the revised Code of Practice will come into force on the 1st of October 2008 and replaces all existing Codes of Practice, in respect of calls and Promotional Material published thereafter. From the 1st July 2008 the new Code is available on www.regtel.ie.

The latest revision is the product of extensive consultation with the industry and other interested parties. The Code takes into account the views expressed, technical advances and consumer and regulatory experience since the launch of the previous Code.

As RegTel's Chairman Fred Hayden notes in his foreword, consumer confidence is essential to the progress of the industry. The new Code of Practice is designed to strengthen consumer confidence in the premium rate sector and thereby encourage the public to use its services.

Guidance Notes consistent with the Code will be published shortly to assist in the implementation and interpretation of the Code.

I wish to thank all those who made submissions or otherwise took part in what has been a very extensive consultation process.

In order to address the issues of concern arising from Mobile Premium Rate Services the Mobile Network Operators (MNOs) having consulted with RegTel have drawn up new procedures to address more speedily consumer concerns.

The new scheme titled "Mobile Network Operator Yellow/Red Card Process" will enable MNOs to act on their own initiatives to address what they consider to be breaches of the RegTel Code of Practice. RegTel has therefore determined that in accordance with their obligations under the Regulation Agreement with RegTel and to give effect to RegTel's Code of Practice that it shall be incumbent on Mobile Network Operators to participate in the Yellow/Red Card Process and associated Notification Procedures across the mobile industry. A similar scheme is already operating successfully in the United Kingdom.

A copy of the Yellow/Red Card process and Notification Procedure including actions available to MNOs is available via the download links below.

			Yellow / Red Card Process
			Notification Procedure

I wish to notify you that my Office has been in receipt of a number of complaints relating to promotional messages sent via WAP links associated with Premium Rate Short Code Numbers. It has become apparent that some Service Providers are sending WAP push messages that once “clicked” can create an immediate charge to the consumer or subscribe a consumer to a subscription service without the appropriate consent. These messages fail to give the consumer the relevant information and are not in compliance with Sections 11.3.1 & 11.3.2 of the Code of Practice.

Until further notice the following guidelines must be followed by all Service Providers operating promotional communications containing a WAP link that may result in consumers engaging with a PSMS service that has received prior authorisation to operate from Regtel:

Any existing service in breach of any of the above guidelines will be regarded as a serious breach of the Code and must be ceased immediately until it has applied for and received prior permission to operate outside of these guidelines from Regtel.

Once a consumer has spent €20, the Service Provider must sent a free reminder message containing details of the subscription service, charges, frequency of charges and the opt-out or unsubscribe facility as set out in Section 11.3.4 of the Code of Practice.

Any new PSMS service must receive prior written permission from Regtel as detailed in Section 3.3.4 of the Code of Practice.

The problem of “opting-out” of subscription services has continued to grow in spite of the inter-industry agreement. This has caused major consumer concerns and generated enormous numbers of complaints and queries. Service Providers and their Content Providers are not using the agreed unsubscribtion term – “stop”. This has now reached a level that is not acceptable, as a reminder has already been sent to all SP’s and ample time allowed to implement all changes required. In order to provide consumer and industry clarity, the following will be carried out by the Regulator’s office;

1. If the “stop” command is not used by SP’s then the services attached to the short code will be suspended for a specified period of time
2. Promotional material will have to be submitted in advance for a defined period of time.

1. “This is a subscription service” must be displayed in a stationary position on the top of the TV screen, must be used in print media, and also this information must be given on radio ads. We would urge you to implement this change to create consumer awareness and to decrease the high level of complaints.

It would appear that the majority of Service Providers are advertising the above services in a manner that is in breach of the Code. The imagery being used is suggestive and explicit and breaches the Code of Practice, 5.2.1(ii). As the current trend in promoting these services is the source of complaints, it has been decided that in accordance with Section 8.4.1 to 8.4.4 of the Code of Practice, Service Providers have two working weeks to remove all adult imagery from their advertisements, web-sites etc. This applies to both subscription and single purchase services. Advertisements for these services that are deemed to continue to breach the Code will be removed for a defined period of time and the promotion of these services will be subject to prior appraisal by this office.