Ofcom Finds ‘Systemic Failures’ In Premium Rate Phone-In Services
Ofcom has found “systemic failures” in premium rate phone-in services on TV, with the outcome of the watchdog’s inquiry into the sector saying some broadcasters “appeared to be in denial about their responsibilities to ensure programmes delivered on the transactions they offered to viewers” and that there is a “lack of transparency through the supply chain.”
The communications regulator has been investigating the services since March following a long string of investigations into programmes using PRS (see Ofcom Announces Phone-In Investigation), with Richard Ayre, a non-executive member of the Ofcom Content Board and former deputy chief executive of BBC News, at the helm.
The inquiry found that compliance failures were systemic; revenue generation was a major driver in the growth of PRS; and some broadcasters appeared to be in denial about their responsibilities to ensure programmes delivered on the transactions they offered to viewers.
It also found there was an apparent lack of transparency through the supply chain – between telecoms operators, producers and broadcasters – resulting in a lack of clarity about responsibilities; and that broadcasters are concerned that there is a lack of clarity between the regulators, Ofcom and ICSTIS.
The inquiry concludes that broadcasters must be made directly accountable for their use of PRS and makes recommendations to the Ofcom Board, including amending television broadcasters’ licences to improve consumer protection and to include independent third party auditing of PRS activity.
The inquiry also suggests that Ofcom should consider introducing licence changes to radio broadcasters.
Following the inquiry’s findings and recommendations, Ofcom intends to consult on the full recommendations as part of its broader Participation Television consultation, due to be published in the next few weeks. In addition, Ofcom says it will review the wider aspects of the co-regulatory relationship with ICSTIS.
“Phoning a TV show isn’t like ordering pizza,” said Richard Ayre. “When you put the phone down nothing arrives: you just have to trust that your call was counted. If broadcasters want audiences to go on spending millions calling in, they need to show they take consumer protection as seriously as programme content.”
Ed Richards, Ofcom chief executive, added: “This inquiry shows the extent to which there has been a systemic failure of compliance.
“Ofcom takes these issues extremely seriously and will continue to take action against broadcasters found to break the rules in this area. To restore trust with viewers, broadcasters need to deliver and demonstrate strong consumer protection as well as quality programming. Ofcom’s consultation will identify the best way to make this happen.”
Most recently, the BBC was fined £50,000 for breaches of its broadcasting code after a studio guest posed as the winner of a phone-in competition on Blue Peter (see £50,000 Fine For BBC).
Numerous other programmes became involved in the scandal, spanning across the broadcasters, with ICSTIS imposing its highest ever fine, of £150,000, on Eckoh, the service provider on Richard & Judy‘s ‘You Say, We Pay’ phone-in quiz (see Record Fine For Richard & Judy Phone Quiz Operator).
This followed a fine for Five, imposed by Ofcom, for breaches of the broadcasting code by its phone-in quiz Brainteaser.
The £300,000 fine incurred by Five is the largest financial penalty ever imposed on a public service broadcaster (see Five Gets Record Fine For Brainteaser Blunders).
Other programmes were also investigated – from Saturday Kitchen through to The X-Factor, whilst ITV’s Play channel was axed and GMTV sacked their phone-in provider following a revealing Panorama investigation.
A recent study showed that the reputations of commercial broadcasters have been severely damaged by the recent scandals, with GMTV the hardest hit.
75% of respondents to a poll said they trust it less since it became embroiled in irregularities over its phone-in competitions. The survey of a 1,000 people was commissioned by marketing website Utalkmarketing.com and carried out by OMD Snapshots (see Hanging On The Telephone).
Ofcom: 020 7981 3040 www.ofcom.org.uk