£150,000 fine for phone company involved in Richard & Judy scam

[Analoguesat]

ICSTIS IMPOSES RECORD SIX FIGURE FINE FOR
MISLEADING RICHARD AND JUDY COMPETITION
ICSTIS, the premium rate services regulator, has today imposed its highest ever fine of £150,000 on You Say, We Pay service provider Eckoh UK Ltd. It has also ordered a sanction to provide refunds to all those affected. The sanction is suspended whilst consideration is given to whether or not the Channel 4/Eckoh refund scheme operates in accordance with ICSTIS code requirements.

The sanctions have been imposed after ICSTIS ruled that the competition, featured on Channel 4’s Richard and Judy programme, seriously misled viewers by actively encouraging them to enter the competition after the potential winners had already been selected. ICSTIS is now referring the case to Ofcom, who may wish to investigate the actions of the parties involved under the Ofcom Broadcasting Code.
Announcing the record fine, ICSTIS Chairman Sir Alistair Graham said: “The size of the fine reflects the very serious nature of the breach of our Code of Practice. The Hearing Panel found clear evidence of fundamental failings in the winner selection process. Winners were being chosen before the competition closing deadline, whilst millions of additional viewers were still encouraged to phone in and pay to enter competition but were denied the opportunity of fair consideration. Such reckless disregard for viewers is unacceptable. In this case, viewers were not only ‘paying competition entrants’ but also consumers who enjoy a high degree of consumer protection already provided by ICSTIS.
“There is no doubt that the public thoroughly enjoys taking part in premium rate competitions and votes on television. However, as well as being entertaining and fun, services should be reliable and trustworthy. Consumer protection should be at the heart of television rather than a
broadcasting philosophy of “the show must go on”. The public should be able to use these services with absolute confidence. Consumers must get a fair deal. In October, PhonePayPlus will be our new name - the regulator of information and entertainment charged to your phone.”
In keeping with our regulatory procedures, Eckoh has the right to appeal the decision to the Independent Appeals Body and has 20 working days in which to do so. Full details of the adjudication can be found at www.icstis.org.uk/latest_news. Sir Alistair Graham will also be
making reference to Participation TV and a regime which encompasses viewer care as well as consumer protection at the launch of ICSTIS’s final annual report on Wednesday 11th July in London. He will also introduce the launch of PhonePayPlus later this autumn.

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Key Facts
• Richard and Judy was commissioned by Channel 4 Television and produced by the
independent production company Cactus Television. Eckoh UK Ltd was deemed the service
provider under its contract with 4 Ventures Ltd (part of Channel 4 Television).
• For the purposes of the regulatory Code and their respective contracts, Cactus TV and
Channel 4 were information providers and formed an integral part of the value chain in
providing premium rate services to viewers.
• The Richard and Judy programme was broadcast from 5pm to 6pm, the on-air competition
took place at approximately 5.42pm with the competition and phone numbers publicised
regularly on screen by both presenters during the course of the programme. The competition
telephone lines remained open until 5.38pm. A shortlist of names was sent by the service
provider to the production company daily at 5.15pm. The competition lines would remain open
for an additional 20 minutes with regular on screen solicitations from both presenters asking
for viewers to enter the competition despite the fact that names had already been pre-selected
and supplied by Eckoh UK Ltd to Cactus TV.
• Channel 4’s own website clearly stated that winners would be chosen after the daily phone-in
competition deadline had closed. The investigation revealed that this was clearly not the case.
• Paragraph 15 of the adjudication details full information about call volumes and revenue
generated.
• The calls cost £1.00 each to enter the competition since 2005
• 60% of the profits were awarded in prize money to competition entrants
• 47% of the calls of viewers attempting to enter the competition were received after the shortlist
had already been drawn up

(Icstis press release)