By Jo Best, 28 February 2005 13:55
NEWS Premium rate content providers will have to agree to abide by tougher rules on misselling if they want to continue doing business, watchdog Icstis has announced.
Is there such a thing as a free ringtone? Premium rate regulator Icstis wants consumers to be sure. It's tightened up its code of conduct in relation to how suppliers can use the word 'free', due to fears that children are being targeted by unscrupulous or unclear mobile ringtone and wallpaper marketing.
"Pricing information should be clear and any terms and conditions likely to affect a consumer's decision to take part... should be clearly provided. This being so, Icstis would like to remind service providers to think very carefully before using the word 'free' when promoting products paid for by premium rate SMS," the regulator said.
The changes to the code of practice mean companies will have to make it clear to would-be customers if the only way they can get any free content is by signing up to a subscription service.
Any provider caught using the word 'free' to mislead the public into buying a product or service will face "significant sanctions", Icstis said.
The watchdog has cracked down on several premium rate companies this month. Win Ltd, which advertised in children's magazine Sneak, was fined £2,500 for selling ringtones and logos with a difficult to understand pricing offer.
In a separate adjudication, Win Ltd was fined £5,000 for promoting a text-back service, which gave information about 'dogging' locations, by sending direct marketing SMSes encouraging recipients to text back.
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