Consumers can access a range of interactive services via their landline and mobile phones, computers and digital TV. Where these services are charged for via the customer's telephone bill, they are known as phone-paid services. They include charity donations by text, music streaming, broadcast competitions, directory enquiries, voting on TV talent shows and in-app purchases. They are also commonly referred to as premium rate services (PRS).

Historically, the Phone-Paid Services Authority (PSA) has been designated as day-to-day regulator for the PRS market, with Ofcom performing a ‘backstop’ regulatory function. Following consultation, Ofcom has now issued a statement saying it intends to take over direct regulation of PRS from 1 February 2025.

Ofcom will withdraw approval of the PSA’s current Code of Practice (known as Code 15). It will introduce new rules via the Regulation of Premium Rate Services Order 2024 (SI 2024/1046) under section 122 of the Communications Act 2003 (PRS Order). This will retain the key principles and outcomes of the current regulatory framework to preserve:

• consumer protection standards and requirements relating to transparency, fairness, customer care, vulnerable consumers and prevention of harm and offence; 
• organisational standards and requirements relating to registration, due diligence, risk assessment and control and systems; and 
• other responsibilities and obligations, including funding, information requirements and records retention.

Additionally, Ofcom intends to streamline some of the existing requirements and ensure greater consistency with Ofcom’s broader regulatory regime. Ofcom’s General Conditions contain several references to the PSA and its Code of Practice that will no longer be relevant after 1 February 2025. So, it is consulting on proposals to modify the General Conditions to remove references to the PSA and its Code of Practice so that they are aligned to the future regulatory framework for PRS.  

The proposed modifications aim to ensure providers give consumers specific information on 
request about premium rate services. Providers would have to give consumer 
information about: 

• how they can obtain information about PRS numbers found on their bills, including the 
  location of any number-checker facilities; 
• a provider's role in dealing with complaints about non-compliance with the PRS Order; 
  and 
• Ofcom’s role and remit as the regulator of PRS in dealing with complaints and how to 
  make complaints to Ofcom about PRS. 

The consultation ends on 25 November 2024.

Why does this matter?

It means that Ofcom will be directly responsible for regulating PRS and the rules will be slightly different, although they will aim to have the same effect in practice.