Memorandum submitted by Ofcom
During our recent appearance at the joint meetings
of the Select Committees you asked about the re-imbursement paid
to victims of GMTV's unfair conduct in relation to its phone-in
competitions, along with the amount of money the company has since
paid to charity.
Our understanding is that the re-imbursement
programme remains open and that GMTV is still dealing with applications
for refunds. The company has not therefore calculated the total
pay-out.
During our investigation GMTV, as part of its
programme of reparations and remedies, made a donation of £250,000
to the charity ChildLine. GMTV also held 250 free prize draws
for all entrants on their refund database, each with a £10,000
prize, at a total cost of £2.5 million.
I appreciate that this does not answer your
questions fully. It might be useful if I explain our remit in
this area, as the extent of it limits the information we can hold—and
are therefore able to share.
We have no power to enforce or monitor re-imbursement.
However, one of the many factors we consider when deciding whether
to impose a fine and, if so, at what level, is the extent of any
package of reparation and remedy. We also normally consider the
steps a broadcaster agrees to take to let viewers know about reparations
(eg publicising a line on their website, making on-air statements,
or publishing advertisements in the national press etc). A well-publicised
and wide-ranging remedies package will be taken into account as
a mitigating factor. Ofcom cannot, however, take into account
the extent to which viewers actually claim their money back, which
can be affected by other factors.
I have forwarded this letter and a copy of the
relevant transcript to the Chief Executive of GMTV and asked him
to reply directly. I have also sent a copy of this letter to the
Clerk of the Committee.
May 2008
| 
