Regulation of the sector
14. No single body has responsibility for the regulation
of Call TV quiz programmes. Their broadcast content is subject
to regulation by Ofcom, the use of premium rate telephony is regulated
by the Independent Committee for the Supervision of Standards
of Telephone Information Services (ICSTIS) and, when the Gambling
Act 2005 comes fully into force in September 2007, at least some
Call TV quiz programmes may be subject to regulatory controls
under the Act.
15. Ofcom published its Broadcasting Code in July
2005, setting out the editorial standards with which all Ofcom
licensees must comply. The Code introduced for the first time
a rule concerning the conduct of competitions on television services,
stating that "competitions should be conducted fairly, prizes
should be described accurately, and rules should be clear and
appropriately made known".[27]
In response to complaints from viewers, focussing on the ease
or difficulty of the competitions, clarity concerning correct
answers, the transparency of competition rules, and other issues,
Ofcom published guidance in April 2006 to assist broadcasters
in their interpretation of the rule.[28]
This guidance includes recommendations and expectations on the
availability and despatch of prizes, clarity of competition rules,
and games methodologies.[29]
Ofcom has recently announced a consultation on whether participation
TV (of which Call TV quiz shows are one form) should be categorised
as advertising rather than editorial content, so that it would
be subject to the Advertising Code rather than the Broadcasting
Code.[30]
16. ICSTIS issued a Statement of Expectations for
Call TV Quiz Services in January 2006, following a consultation
exercise opened in September 2005. The Statement was prompted
by an increase in the number of complaints and inquiries received
by ICSTIS about Call TV quiz services.[31]
It clarifies the way in which the ICSTIS Code of Practice applies
to such services and sets standards for:
— clarity
of pricing;
— clarity over charging for failed entry
calls;
— provision of relevant terms and conditions;
and
— the use of clocks and other countdown
triggers to stimulate calls.
Failure to meet the standards amounts to a breach
of the ICSTIS Code of Practice and can lead to sanctions such
as a formal reprimand, an order to pay reasonable compensation,
imposition of a fine of up to £250,000, barring access to
services, and banning named individuals from operating services
for set periods.[32]
17. ICSTIS announced, when issuing the Statement
of Expectations, that it would keep the Call TV quiz format under
review and would undertake periodic monitoring exercises to ensure
that the necessary level of consumer protection was maintained.[33]
Acknowledging that the market is a "fast-moving one",[34]
and in the light of continuing complaints, ICSTIS has since embarked
upon a new, detailed review of the format. The review has examined
levels of transparency about what is involved in participating,
whether statements made on-screen by presenters are accurate,
whether there is evidence of excessive use by callers, whether
prizes are issued quickly and "with certainty", and
whether free web entry routes are genuine alternatives to paying
for a premium rate call.[35]
ICSTIS expects to announce its findings soon.
18. The Gambling Commission was created by the Gambling
Act 2005; it was set up in October 2005 and replaces the Gaming
Board of Great Britain as the gambling regulator. The Commission
has a major task in drawing up a full regulatory framework for
the industry by the time that the Act comes fully into force in
September 2007. As part of this effort, it has launched a consultation
on the distinctions under the Gambling Act between prize competitions,
lotteries, and free draws.[36]
The Commission told the Department that it expects to issue its
response "in the New Year".[37]
We consider some of the issues raised in the consultation - and
their relevance to free entry mechanisms - in more detail below
(at paragraphs 24 to 29).
Complaints to Ofcom and ICSTIS
19. Ofcom's guidance on interpretation of Rule 2.11
of the Ofcom Broadcasting Code explains that complaints about
the broadcasting of information about premium rate services would
normally be for ICSTIS to handle, whereas complaints about fairness
in the conduct of a competition, or its solution or methodology,
would normally be investigated by Ofcom. Both Ofcom and ICSTIS
have received substantial numbers of complaints about Call TV
quiz services. In 2005, Ofcom received 500 such complaints; but
it expects to have received more than 800 in 2006.[38]
Complaints to ICSTIS rose in late 2005 but fell rapidly after
the Statement of Expectations had been issued in January 2006.
Numbers have risen slightly since.[39]
Some of the generic complaints are examined in this report.
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