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Tuesday July 8, 2009

Ireland Clamps Down On Phone And Text Messaging Scams

"This Bill aims to protect the consumer, particularly children and the elderly, who can be subject to misleading information and exploitation.

Last week, Communications Minister Eamon Ryan presented a Bill to Government to regulate premium rate content offered by phone operators including for example, ring tones, traffic news, sports results, competitions advice, entertainment and chat lines.

The Bill puts in place a strong regime for consumer protection, for subscribers to premium rate services.

It replaces the existing industry model of self-regulation overseen by RegTel and transfers the regulatory functions to the statutory Communications Regulator -ComReg.

It also aims to provide consumers with confidence in this new regulatory regime by including strong protection and enforcement powers.

For the first time, premium rate service providers will require a licence to operate and will be required to abide by conditions of that service

Failure to comply with those conditions will result in amendment, suspension or revocation of the licence by ComReg, while operation without a licence will be punished by potential fines of up to €250,000

A separate offence will also be created for overcharging for a premium rate service

Announcing the Bill, Minister Ryan said, "I am pleased to end the self-regulation of the industry on the issue of premium rate services.

"These services have been the subject of thousands of complaints, to RegTel and to my office.

"This Bill aims to protect the consumer, particularly children and the elderly, who can be subject to misleading information and exploitation.

"I know that the industry itself was conscious of the damage being caused by rogue operators in the wider market.

"This is a major step forward for consumer protection and for regulation of the industry and I am confident it will improve the Irish consumer's experience of telecommunications in general."

The Bill will be published in the coming days.

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