Record fines for text pest firms
SIX companies based overseas were given record fines today for bombarding mobile phone users in the UK with messages about bogus promotions.
The firms, registered as far afield as Florida and Kuala Lumpur, sent scores of unwanted text and voicemail messages indicating recipients had won 'cash' of up to £5,000.
But respondents were left out of pocket when they rang a claim line charged at £1.50 a minute, only to find their 'prize' never materialised or turned out to be leisure vouchers with numerous conditions attached.
The six companies were fined £75,000 each and barred for two years after an investigation by the body which regulates premium rate services in the UK.
Icstis (Independent Committee for the Supervision of Standards of Telephone Information Services) penalised the firms for not including call costs or contact details in the messages, suggesting prizes were 'free' and trying to rush recipients into phoning.
The six companies sanctioned are: Fast Way Holdings, based in Zagreb, Croatia; Greenbay Ltd and Quartel Ltd, based in the British Virgin Islands; Indiano Communications, registered in India; Litmus Ltd, based in Florida; and Vertica Media Ltd, from Kuala Lumpur.
Four of the companies sent messages urging recipients to call a national or freephone number. Those who did were given a premium rate number to call instead.
'We believe they used this method to try and fool us because we have cracked down on instances where the premium rate number has appeared in the original message,' said a spokesman.
All six companies used a firm called Smile Telecom, based in Bury, Lancashire, to act as their agent in the UK.
But a spokesman for Smile Telecom told PA News its involvement was limited to putting the companies in touch with operators providing premium rate numbers.
'We advise our clients to read the Icstis code of practice prior to starting their services,' he said. 'We have no control over their marketing.'
Icstis used emergency powers to ensure the fines are paid and has referred all 199 complaints about the six companies to Smile Telecom to obtain refunds.
The six companies were among a number fined today by Icstis for sending unsolicited text and voicemail messages.
They include four companies based in Stockport, Greater Manchester, which were fined £10,000 each and barred for six months.
All four sent text messages claiming recipients had 'won' a holiday or a 'cash award'.
Icstis, which believes the firms are linked, said it appeared most people who responded received only vouchers with restrictions.
The four companies are: Quality Sign Services, James Promotions, Dynamic Promotions, and Resource Promotions.
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