Phonepayplus clamps down on free advice charges

Phonepayplus is clamping down on companies that are charging people for information that can be found free elsewhere.

The premium-rate phone regulator also said operators promoting premium-rate services on websites should not be able to use the.org suffix because it can confuse people into believing they are dealing with a non-profit or charitable organisation.

The move has been prompted by a growing number of complaints from consumers who have found they had to pay high fees for advice they could have got free.

Phonepayplus said: "An example of this would be information or advice about means-tested benefits, or information or advice aimed at a group of consumers who have suffered financial loss or hardship as a result of a recent event which is in the public eye. It is likely that any Public Information Service which does so will be found in breach of the Phonepayplus Code of Practice."

The regulator has now laid down rules demanding that providers make it clear if information is available free from other sources. “The existence of a free alternative should be prominently presented on websites, so that the consumer does not have to scroll down to become aware of it, and on any other promotional material,"

This information must also be given to the consumer at the beginning of a premium-rate call such as to an 09 number and within the first 15 seconds.

It also said these companies must also avoid targeting the vulnerable and that they refrain from using .org addresses. Other measures include requiring companies running premium-rate advice services.