AIME briefing on Potential Judicial Review of PhonepayPlus

11 July 2014

All information in this release is derived from material already in the public domain.

In 2013, PhonepayPlus’ Research and Market Intelligence Team downloaded a virus to their test computer as part of the ongoing monitoring of the digital advertising of premium rate services and found that a form of malware prevented their computer browser from accessing websites and displayed a warning that the user had performed activities that were unauthorised. The warning also suggested that to prove that the user was human and to get the browser unlocked, the user had to use one of a range of different commercial offers.  These “offers” led to various subscription-based premium rate services.

The malware, known as “Ransomware”, was used by an affiliate publisher to promote services. The malware had been recently re-authored to act in this way, previously designed to extract for £100 PayPal payment from the user, and it was unclear if any consumers had been affected before PhonepayPlus detected the malware.

Over the following few days, PhonepayPlus Executive raised an Emergency Procedure against the companies whose services had been promoted by the affiliate utilising the malware. In all, 10 companies were affected and all received the Emergency Procedure which shut down their services and froze any revenue flow.

Later that year, nearly all of the companies were adjudicated against by the PhonepayPlus Code Compliance Panel and received fines and warnings.

Two of the companies, Germany based Ordanduu GmbH and Optimus GmbH, felt that PhonepayPlus had breached European law in carrying out its investigation against them and requested a Judicial Review through the English Courts. In April 2014, permission to proceed with a Judicial Review based on possible breaches of EU Law was granted by the Administrative Court. In granting permission for a Judicial Review, the Judge, Justice Charles also gave permission to the Barrister, Gerry Facenna of Moncktons Chambers, to add in to the Judicial Review, potential issues of English Law in terms of “fair regulation”.

We note that whilst observations about PhonepayPlus’ process and fair regulation have been raised by Justice Charles in his summing up the Judicial Review is not yet concluded. We would however expect that PhonepayPlus will take these observations into consideration and are working closely with PhonepayPlus in relation to its 13th Code consultation, and will be detailing the various requirements for review on behalf of its members

AIME will not comment on the specifics of the Judicial Review as it is not appropriate to discuss ongoing legal cases nor speculate on the potential implications of the Review at this stage.

However, AIME is in discussion with PhonepayPlus regarding the creation of a cross industry working group.  This will seek to address the relevance and effectiveness of the current regulatory model in light of the rapidly changing dynamics brought about by new digital content consumption and changing consumer behaviours.

AIME Board Chairman Edward Boddington of Harvest Media stated; “The Premium Rate Industry is characterised by rapid change and in some cases the industry is still catching up to the evolving risk element when using affiliate marketing.  PhonepayPlus is constantly evolving its own approach in the face of new risks.  This case represents a disagreement as to whether all parties reacted sufficiently and correctly to the particular risk of ransomware, utilised by a rogue affiliate.  Moving forward, new risks will emerge, and doubtless new disagreements will emerge.  AIME believes that close collaboration between industry and the regulator is the best way of keeping misunderstandings, under estimations, and disagreements to a minimum. AIME is negotiating with PhonepayPlus for the creation of a cross industry working group to consider certain aspects of current regulatory processes and to be available to assist when new risks emerge. AIME will also continue to keep Members informed and will work with them to ensure the appropriate regulatory framework exists to support their businesses.”

 

Sponsor Spotlight: IMImobile

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Creating the next generation of interactive broadcasting with IMImobile

For Broadcasters, audience interaction has become a key differentiator in engaging and retaining an audience. With a deep heritage of working within the broadcasting industry and understanding the need for an unrestricted view of the mobile and social landscape, IMImobile built the DaVinci Social platform to enable broadcasters to take the next step in interactive broadcasting. 

To read the full article from IMImobile regarding   Da Vinci Social which is the  market leading multi-channel audience engagement platform please click here:  IMImobile Feature DaVinci Social

DaVinci Social

Sponsor Spotlight: Oxygen8 Group

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It’s fair to say that interactive mobile services are fast becoming a viable business strategy for many organisations and with the UK mobile market penetration at 92%, it’s easy to see why! Customers want immediate access to the information that they are seeking. Failing to offer the right channels to provide real-time interaction will see businesses lose out to those quick to embrace innovative communication technologies.

Oxygen8 Group, headquarters in the UK, is a global provider of integrated voice and mobile solutions in the micro and digital payments market. With annual revenues in excess of £105 million, Oxygen8 is privately owned, profitable and debt free. We offer a value led approach to partnering with clients, in order to maximise their activities and revenues for mutual, sustainable marketplace growth.

As a voice network operator and SMS aggregator, we deliver billing services such as SMS (premium and bulk), MMS, Direct Operator Billing, Voice Short Codes, Premium, Geo and Non-Geo voice number ranges. These are underpinned by our hosted platforms for Voice and IVR services, SMS campaign builders, CRM engagement and optimisation tools offering comprehensive statistics, analysis and MI tools.

Oxygen8’s support is delivered through locally based offices around the globe, with operations and offices in the UK, Ireland, South Africa, Kenya, Uganda, US and Canada, Australia, Caribbean (Barbados) and Asia (Singapore).

Oxygen8’s Geographic Reach:

VOICE:

– International free phone – 127 countries

– International geographic numbers – 113 countries

– Premium rate numbers – 59 countries

– Universal International free phone – 48 countries

– International Premium Rate Numbers  – 59 billing routes available with accessibility to over 228 networks

– UK Non-geographic Number ranges – accessible from 22 countries

– UK personal numbering – accessible from 22 countries

SMS:

– PSMS – 86 countries

– Bulk SMS – 218 countries

Simplifying Payments…

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Our portfolio of payment solutions is easy to integrate into your sales strategy.

Oxygen8PAY, our PCI compliant e-commerce, mobile and IVR card payments solution, offers a range of different payment options using the mobile handset:

– Premium SMS & Voice: a simple way to pay for services and products via the mobile handset, no time consuming registration processes or providing personal card details.

– PayForIt: consumers do not need a credit card or membership with any payment service provider to pay for your digital goods online, making this another easy way to pay for products and services via their mobile phone.

– Online and IVR credit card payments: allows your customers to purchase products and services via your call handling (IVR) and mobile solutions (web). The application talks directly with your customers bank, returning an authorisation code, creating a quick, easy and discreet method of paying for your products.

NEW to our portfolio:

7 digit voice short codes

We have recently added 7 digit voice short codes to our portfolio. 7 digit voice short codes are based on our existing 5 digit short code service with a two number suffix added at the end, we have up to 100 extensions available in the ranges of ‘00’ to ‘99’.

There are many benefits to using 7 digit voice short codes:

– Create up to 100 individual numbers from a single 5 digit number
– Clear pricing for the consumer
– Easy to use
– Memorable

Changing Consumer Communications…

Our mission is to help businesses create a more direct, personal and meaningful way to connect with customers and our state of the art web based mobile marketing platform Evolve does just that. We want our customers to embrace the power of mobile as a multi-channel tool for communicating directly with consumers, ensuring it is personal and meaningful.

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Our platform also allows businesses to create, schedule and send highly-targeted SMS campaigns, as well as the ability to incorporate imagery, video and audio through its HTML5 mobile page builder.

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Evolve has the power to close the loop on customer communications, linking into our payment and voice platforms, meaning that customers can react to offers instantaneously.

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We hold an unrivalled portfolio, providing billing in 110 countries worldwide, offering your business the chance to access billions of potential customers. Our clients trust us to deliver their mobile solutions and handle any and all complexities and processes their individual business has to address to ensure safe and secure mobile payment activities.

To find out more about Oxygen8, why not download one of our brochures, view one of our infographics or watch one of our videos here.

If you would like to arrange a meeting to speak with one of our team then please click here 

DMG Media selects Fonix for Mobile Messaging & Interactive Services

DMG Media part of Daily Mail & General Trust plc has partnered with Fonix Interactive for mobile messaging, marketing and interactive services across their core media brands and publications including the Daily Mail, the Mail on Sunday and Metro

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 LONDON, UK — June, 2014 — Fonix Interactive (Fonix) who specialise in mobile messaging, payment and interactive mobile services and DMG Media one of Europe’s largest media groups have announced an exclusive 2 year partnership. Fonix has been appointed as the mobile services provider, using Fonix’s state of the art mobile messaging gateway delivering interactive mobile services across DMG’s publishing portfolio.

The partnership is focused on driving innovative and interactive mobile campaigns that engage audiences, add value and foster engagement.

Jonathan Creber, Commercial Director of DMG Media Mobile and TV said “We have a very loyal and interactive audience that engages with our brands through various channels. Offering interactive mobile services allows us to provide added value to, and develop deeper relationships with, our consumers in addition to building an even richer profile of our core audience.”

Rob Weisz, CEO of Fonix Interactive said, “DMG Media has a great range of content and has been running successful mobile interactive services for a number of years. We are thrilled to have been selected to be their partner of choice to drive engagement and revenue through interactive mobile campaigns and performance optimisation marketing. We believe the way we analyse direct and contextually relevant data associated with the services to increase the performance through CRM and marketing is unrivalled in this market space.’’

 

About Fonix

Fonix offer mobile messaging and payment solutions through proprietary and contemporary technology and platforms. They provide a strategic managed service that focuses on operational processes, performance optimisation, generating interactivity and revenue for customer partners.

 

About DMG Media

DMG Media is the consumer business of Daily Mail & General Trust plc – an international group quoted on the London Stock Exchange with a portfolio of market leading digital, information, media and events businesses.

DMG Media comprises the Daily Mail, the Mail on Sunday, Metro, Jobsite, Wowcher and Zoopla Property Group.