Ayre inquiry reveals systemic failure by broadcasters

Ofcom today published the outcome of the inquiry into the use of premium rate telecommunications services (PRS) in television programmes. It was led by Richard Ayre, a non-executive member of the Ofcom Content Board and former Deputy Chief Executive of BBC News.

The inquiry was launched by Ofcom in March following the high volume of investigations into programmes using PRS. These raised serious concerns for Ofcom about the scale of compliance failure in this area, and the impact on trust between broadcasters and viewers.

The inquiry found that:

* Compliance failures were systemic;
* Revenue generation was a major driver in the growth of PRS;
* Some broadcasters appeared to be in denial about their responsibilities to ensure programmes delivered on the transactions they offered to viewers;
* There was an apparent lack of transparency through the supply chain - between telecoms operators, producers and broadcasters - resulting in a lack of clarity about responsibilities; and
* Broadcasters are concerned that there is a lack of clarity between the regulators, Ofcom and ICSTIS.

The inquiry concludes that broadcasters must be made directly accountable for their use of PRS and makes recommendations to the Ofcom Board, including:

* Amending television broadcasters' licences to:
- include requirements for consumer protection in relation to PRS; and
- require independent third-party auditing of PRS activity;

* Issuing further guidance on the Broadcasting Code and licence conditions in the following areas:
- measures to minimise lost or wrongly-charged entries;
- fairness in competitions; and
- transparency in pricing.

The inquiry also suggests that Ofcom should consider introducing licence changes to radio broadcasters.

Following the inquiry's findings and recommendations, Ofcom intends to consult on the full recommendations as part of its broader Participation Television consultation, due to be published in the next few weeks. In addition, Ofcom will review the wider aspects of the co-regulatory relationship with ICSTIS.

Richard Ayre said: "Phoning a TV show isn't like ordering pizza. When you put the phone down nothing arrives: you just have to trust that your call was counted. If broadcasters want audiences to go on spending millions calling in, they need to show they take consumer protection as seriously as programme content."

Ed Richards, Ofcom Chief Executive, said: "This inquiry shows the extent to which there has been a systemic failure of compliance."

He added: "Ofcom takes these issues extremely seriously and will continue to take action against broadcasters found to break the rules in this area. To restore trust with viewers, broadcasters need to deliver and demonstrate strong consumer protection as well as quality programming. Ofcom's consultation will identify the best way to make this happen."

The inquiry into premium rate services in television programmes is available from the Ofcom website at:
http://www.ofcom.org.uk/tv/ifi/prsinquiry/ayrereport/

Ofcom's statement on the inquiry into premium rate services in television programmes is available from the Ofcom website at:
http://www.ofcom.org.uk/tv/ifi/prsinquiry/ofcomresponse/