http://www.icstis.org.uk/pdfs_news/MediaRelease_Opera_Telecom.pdfICSTIS IMPOSES RECORD FINE OF £250,000 ON OPERA TELECOM
FOR SELECTING POTENTIAL GMTV COMPETITION WINNERS EARLY
ICSTIS, the phone-paid services regulator, has today imposed its
maximum fine of £250,000on GMTV competition phone service provider Opera Telecom Ltd for selecting potential
winners before the competition had closed. ICSTIS found that all correct entries submitted
after a certain time each day had no chance of winning, despite consumers being charged
for entering. The fine is the highest ever imposed by ICSTIS in its 21-year history.
In what it described as the “the worst case which ICSTIS had come across in terms of the numbers
of consumers affected and the amount of money at stake”, ICSTIS found that, by picking potential
winners early, in almost four years at least 18 million callers had been charged for entering the
competition but had no chance of winning. With the average cost of a call being over £1, the
revenue generated by callers with no hope of winning appeared to be in
excess of £20 million.
ICSTIS has also imposed additional sanctions on Opera Telecom:
• A bar on running competition services for 12 months.
This has been suspended subject to Opera
Telecom undergoing, and implementing the recommendations of, an independent evaluation of
its procedures and management structure to address “systemic failures within the company”.
• An order to pay full refunds to complainants.
This has been suspended for three months pending
a review by ICSTIS of the success of the current refunds scheme.
•
A formal reprimand. (I bet Opera is worried about this)
So, a revenue of $40m and a fine of $0.5m.
Is this punishment, or a pat on the back.
Like Ofcom, this is one inept and corrupt organization.