Submitted by Mike Grenville on Mon, 24 May 2004 16:13

Fines totalling nearly half a million pounds have been imposed on those behind a mass of spam and scam text messages encouraging consumers to call premium rate numbers in the UK

ICSTIS, the premium rate services regulator, has announced that six companies have each been fined £ 75,000 for breaching its Code of Practice. These companies' actions included sending unsolicited text messages, making unsolicited phone calls and using automated calling equipment to leave 'missed calls' on mobile phones. The six companies are Vertical Media Ltd, Fast Way Holdings Ltd, Litmus Ltd, Indiano Communications, Greenbay Ltd and Quartel Ltd - all based outside the UK.

These actions were deliberately designed to trick people into calling premium rate numbers (at up to £1.50 per minute) to claim prizes that either didn't exist or, at most, were woefully below what was promised. For example a large cash prize would be offered but, at best, the prize would turn out to be holiday vouchers with very restrictive clauses.

ICSTIS Director George Kidd said: "The case is of particular concern as the six companies all have the same UK agent operating on their behalf - a company called Smile Telecom, based in Bury - and all have the same mailing address. We have instructed redress to be paid to those affected but Smile Telecom has refused to compensate complainants unless requested to do so by its six clients."

Along with the £450,000 collective fine, ICSTIS has barred the companies. ICSTIS has brought the case to the attention of the DTI, Ofcom and the police and will itself continue to investigate the links between those involved and the case for further action against anyone found to be behind the problem. ICSTIS also expressed its disappointment at the role of the four telephone companies( Intelliplus Group, Redstone Communications, Switch Call and Ventelo) that saw it as appropriate to allow their numbers to be issued to Smile Telecom as falling short of what should be expected of companies providing communications.

Communications Minister Stephen Timms said: "Consumers who get ripped off by these scams will be pleased to see that justice has been done.

"These get rich quick schemes damage the reputations of legitimate operators. We are determined to work with ICSTIS and other groups to weed out these fraudsters and make sure that such scams are confined to the past."

Mr Kidd added: "The UK has a large and innovative premium rate industry used by broadcasters, charities, mobile content providers and others. This sort of action not only harms the consumer, but also the premium rate industry itself. We will continue to act to prevent this sort of activity and punish those responsible."

www.icstis.org.uk