The Regulation of Premium Rate Services Order 2024

EXPLANATORY NOTE

(This note is not part of the Order)

This Order introduces new provisions imposing requirements with respect to the provision and contents of certain premium rate services (so-called controlled PRS) within the meaning given by section 120(7) of the Communications Act 2003 (c. 21), and the facilities made available in the provision of such services. This Order also makes new provisions imposing requirements with respect to the arrangements made by providers of such premium rate services for the promotion and marketing of those services, and for the enforcement of requirements imposed under the Order.

Part 1 contains definitions that are used throughout the Order, including key concepts such as “controlled PRS” (article 3), “PRS provider” and “regulated activity” (article 9).

Part 2 sets out requirements to give OFCOM information described in Schedule 1 in the manner specified by them on their website at www.ofcom.org.uk. Part 2 also requires the appointment of one or more persons in senior management for purposes such as having the authority to act on behalf of a PRS provider relating to requirements imposed under the Order (so-called generally authorised person). Some PRS providers (merchants) are exempted from those requirements under article 11. Article 13 and Schedule 2 contain transitional provisions for PRS providers who were previously registered with the Phone-paid Services Authority (“PSA”). OFCOM are also required to establish and maintain a register (article 12).

Part 3 sets out a requirement for certain PRS providers to pay OFCOM’s administrative charges to recover their expenditure in connection with establishing and maintaining procedures, and other arrangements for the purposes of the requirements of the Order.

Part 4 contains provisions about applying due diligence measures to ensure that arrangements are not entered into with unregistered PRS providers or persons on whom directions, decisions or sanctions have been imposed (articles 15 and 16). Article 17 also requires PRS providers to carry out certain risk assessments. PRS providers are also required to suspend their arrangements with others under some circumstances (articles 18 and 19).

Part 5 contains requirements on some PRS providers (intermediaries) to carry out security testing in respect of their payment platforms for relevant operator billing. It also requires network operators to take some actions in some cases.

Part 6 contains various requirements relating to consumer protection. Chapter 1 prohibits misleading information. Chapter 2 deals with matters relating to the promotion and marketing of controlled PRS. Chapter 3 makes provision in respect pre-contractual information, including requirements to obtain express consent from consumers for certain controlled PRS. Chapter 4 sets out various requirements in respect of the provision of controlled PRS. Chapter 5 sets out requirements to protect vulnerable consumers (article 39) and to prohibit harmful material (article 40). Chapter 6 sets out requirements in relation to competition or voting services. Chapter 7 sets out other requirements (such as pricing restrictions) in respect of some other types of controlled PRS.

Part 7 contains additional requirements on network operators to retain payments for controlled PRS for a minimum period before they make them to another PRS provider and to keep certain records in respect of premium rate numbers.

Part 8 sets out requirements for PRS providers to provide information to OFCOM for the purpose of carrying out their functions under or by virtue of this Order.

Part 9 contains a general record-keeping requirement.

Part 10 contains provisions about enforcement, including a requirement to preserve evidence for investigation purposes (article 58), enforcement notices and civil penalties (articles 59 to 61), imposition of interim measures in specified cases (articles 62 and 63) and the giving of directions for serious contraventions (article 64). Article 66 and Schedule 4 contain transitional arrangements for the purposes of a relevant approved code.

Copies of PSA’s code of practice entitled ‘Code of Practice 2021 (Fifteenth Edition) – Code for Premium rate services’ are available online at www.psauthority.org.uk. Hard copies of that Code and relevant approved codes can be obtained free of charge by writing to the Networks and Communications Group, Office of Communications, Riverside House, 2a Southwark Bridge Road, London SE1 9HA.

A full impact assessment has not been produced for this instrument as no significant impact on the private, voluntary or public sector is foreseen. An Explanatory Memorandum is published alongside this instrument online at www.legislation.gov.uk. Hard copies can be obtained free of charge by writing to OFCOM at the address above.