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U.K. TV broadcasters should be responsible for complying with tel...

U.K. TV broadcasters should be responsible for complying with telephone premium rate service (PRS) rules, a report from the Office of Communications (Ofcom) said Wednesday. The report results from an inquiry launched by the regulator in March after a…

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public outcry over pricey phone calls to competitions and votes that were lost, not counted, or made by consumers unaware that the game was already over. (Under the standard arrangement, telephone service providers split call revenue with broadcasters.) Given the scale of audience participation across a broad range of channels, programs and transactional opportunities, author Richard Ayre wrote, the number of would-be participants who were ignored, misled or unfairly charged cannot be guessed at. The key problem is the absence of systems designed to require, ensure and audit compliance with PRS rules, he said. The inquiry found broadcasters more at fault than telecommunications operators. Broadcasters and producers must clearly understand their obligation to viewers who pay premium rates in the expectation of receiving an additional service, it said. Although broadcasters have begun to clean up their act after the brouhaha, and the newly created Gambling Commission, which takes on full powers in September, is likely to declare most broadcast quizzes and competitions illegal lotteries, the report said, Ofcom should act now to boost its regulatory effectiveness and forestall future attempts by commercial broadcasters to induce viewers to enter into financial transactions. Ayre recommended that broadcasters be held directly responsible for PRS compliance through the entire supply chain, just as they are for broadcast content, and that TV licenses include consumer protection requirements related to PRS and other direct commercial transactions. Ofcom’s response to the report noted that it has already fined broadcasters in two major cases, including, for the first time, the BBC, and has other ongoing investigations. The regulator said it is “minded to accept” Ayre’s recommendation for changes to broadcast licenses and will raise the issue in an upcoming inquiry on participation TV.