Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
Premium-rate Services (PRS) is a term used to describe services that offer some form of content, product or service that is charged via users’ telephone payment arrangements. Typical examples include mobile ringtones and logos, horoscopes, chatlines, adult material and competition and prize draw lines. PRS are usually advertised on 090 dialling codes and short access codes.
Traditionally, telephony has been seen as inexpensive and the public is not always aware of the prohibitive cost of premium-rate services – even if the cost is stated in an advertisement (which it usually is not). As a result, problems about the cost of PRS are often brought to the attention of the ASA. We advise marketers to be transparent when advertising PRS and we draw their attention to some common pitfalls.
Marketers should ensure that advertisements for premium-rate services are not misleading by omission and that they make clear the cost of calls (Rule 9.2.6; Plantworld, 18 February 2004). Marketers must make clear whether accessing a premium-rate service will result in the consumer being automatically signed up as a subscriber to that service – instead of them merely receiving one-off content – and will result in a regular charge (see Telecommunications: Mobile Phone Downloads and Subscription Services)
Marketers should take special care when addressing advertisements for premium-rate services to children. Not only do specific guidelines relating to the cost of PRS targeted at children exist but marketers should ensure that their advertisements “contain nothing that is likely to result in their physical, mental or moral harm” (Rule 5.1). Please see the Advice Online entry Telecommunications: Mobile Phone Downloads and Subscription Services for full advice on marketing PRS to children.
Marketers should not use PRS to surreptitiously charge customers for services or promotions advertised as “Free” (AC Entertainment, 14 April 2004) Free offers may be so described only if they cost no more than the unavoidable cost of responding – that includes posting a letter or making a local call but not calls to a PRS (Rule 3.23). Asking consumers to call a PRS to obtain their “Free” item is a breach of the Code.
PRS lines are sometimes used as the sole entry route to prize draws. That type of mechanic could render the draw an illegal lottery and marketers should seek legal advice if they intend to base a draw on a PRS. CAP understands that promoters seek to avoid running illegal lotteries by offering a free route of entry to their draws or promotions, the so-called “No Purchase Necessary route”. CAP advises that entry by non-PRS-means should be given at least equal prominence to that of the PRS number (Rule 8.17.5; GR8 Games Ltd, 18 January 2006).
Finally, marketers providing a PRS route of entry into prize promotions should ensure that they do not overstate the value of the prizes or “gifts” in relation to the cost of the PRS call (Strike Lucky Games, 7th May 2003).
Advertisements for PRS sent directly by SMS are obviously subject to the same legal requirements as any other mobile marketing techniques and should normally be sent only to those who have agreed to receive them (Rule 10.13.3). See also the CAP Help Note on Mobile Marketing (link to mobile marketing helpnote).
Marketers should refer to the PhonepayPlus Code of Practice on premium-rate services: (See Premium-rate Services: Remit and link to PhonepayPlus Code).
Sales Promotions: Lotteries and Sales Promotions: No Purchase Necessary Route.
Last modified : 27 July 2010