Issue sponsored by
Issue 22 • Sept 2011
PhonePay Plus extends its remit to look at apps and other digital services phonepay plus, the UK regulator of premium rate telephone services (PRS) is looking to extend its remit to tackle not just premium rate services, but to also position itself to protect consumers from rogue practices around the wider mobile media and content environment. Following the implementation of its latest Code of Practice – which shakes up how it regulates the PRS business – PPP has now issued a consultation to the telecoms and digital industries in order to tackle hidden threats to consumers from apps on smartphones. The PhonepayPlus consultation around apps makes clear to providers a number of risks to both consumers and the digital and m-commerce markets. These risks were identified through PhonepayPlus monitoring, consumer complaints to the regulator and discussions with industry stakeholders. The consultation contains a number of key recommendations to providers aimed at both ensuring consumers are protected and that rogue providers are not allowed to wreck havoc in the growing digital economy. These recommendations include: • Consumers’ consent to charge must be clear. • Services operating on a ‘freemium’ model must make clear what is and is not free and consumers must be clearly informed of the price of any extra purchase options before they interact with the service. • Where malware is found, a Tribunal may not consider any proof of consent, such as records of text messages or calls, to be robust enough evidence of a consumer’s consent. • Stored applications must require that the password is re-entered every time the application is opened – this helps prevent children purchasing digital goods (such as virtual credit) without the phone owner’s permission, empowering parents by giving them better control and choice. • ‘Exchange rates’ and ‘expiry dates’ for virtual currencies must be clear (eg 100 credits = £1). In recent months, PhonepayPlus has taken action on apps which maliciously charge consumers without their knowledge or consent. In one example, a ‘free battery saver’ app contained malware – identified by PhonepayPlus monitoring – that accessed the phone’s text message function, allowing texts to be automatically sent and received. Text messages were sent that subscribed consumers to a premium rate subscription service without the consumer’s knowledge or consent. PhonepayPlus immediately shut down the service and, following a full investigation, imposed a fine of £135,000. Paul Whiteing, PhonepayPlus’ Chief Executive, urged a collaborative effort with the communications and creative industries to ensure those industries retain consumers’ digital trust. “We will not hesitate to use our robust sanctioning powers to drive out rogue providers who could damage a vital part of the UK’s growing and innovative digital and creative economies. We ask all businesses involved in the digital market, and the provision of smartphones and apps, to work with us to ensure we retain consumer confidence in digital content.”
THIS MONTH... News
The latest news from the industry, along with analysis of what that news means, including: • Channel Five uses Facebook for Big Brother voting 3 • 40% of Fortune500 have trouble with multiple platforms 4 • New Look sees sales surge with HTML5 mobile site 5 • Roamers use more data than voice for first time, finds MACH 6 • Kindmags goes digital with raft of apps 7 • Ukash hits top spot in Sunday Times Microsoft Tech 100 8 • ImpulsePay allows Virgin Train users to pay by mobile for wifi 8 • Momac takes French magazines group digital 9 • PayWizard offers vouchers and p2p payments 9
Analysis Editorial iPhone5: whatevs iPhone 5 will be out by 14 October, but why should we care as everything goes social – and Kindle Fire 11 FRAUD In Kwak we trust Telemedia-month talks to Josef Bruckschloegl about how Kwak is cleaning up PRS 13 CHARITY Giving it up Paul Skeldon reports from AIME’s Empowering the Charitable sector event in London last month 15 MARKETING Hip to be square Bob Bentz from ATS talks us through the potential of branded QR codes 16 WORLD TELEMEDIA AMSTERDAM A look at what is on offer from our international PRS show in Amsterdam on 12-14 October 18
Directory The leading industry directory of services 13
Latest news at www.telemedia-news.com Catch our blog at www.telemedia360.blogspot.com