Watchdog cracks down on premium rate diallers

Companies wanting to run premium rate services using internet dialler software will now have to obtain permission to operate from the Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS).

The move to license services follows a surge of complaints by consumers whose internet connections have been diverted to premium rate numbers without their knowledge.

The new arrangements will also mean that telephone networks cannot give out premium rate numbers to companies to run such services until they see written confirmation from ICSTIS that permission has been granted.

BT has already announced its intention to stamp out rogue diallers by blocking traffic to the premium rate numbers believed to be associated with them.

ICSTIS director George Kidd said in a statement: "We will only grant permission to those companies that satisfy our stringent requirements.

"These are currently being finalised but will cover key areas such as clear terms and conditions, user consent, information about how to delete diallers, and responsibility for customer refunds and ICSTIS fines.

"Our new licensing arrangements are the first step in putting a stop to the type of fraudulent activity we have seen of late."

Network operators that do not abide by the new licensing rules will be reported to Ofcom, warned Kidd.

"Phone companies have the systems to identify suspicious call patterns and can take action before their customers unknowingly run up huge bills," he said.

"Those networks that give out premium rate numbers in the first place have a duty to carry out thorough checks on those they give them to, and to look at the speed at which they pass money on to them."