WIREDGOV

Firms face £2m fine for silent calls

News Release issued by the COI News Distribution Service on 22 March 2010

Embargoed until 00.01 Tuesday 23 March 2010
Firms which cause nuisance and distress to consumers through silent and abandoned calls will face a new maximum fine of £2 million, Kevin Brennan, Minister for Consumer Affairs confirmed today.

The new penalty is an increase on the current limit of £50,000, and will be introduced to more fully deter organisations that persistently make silent calls to consumers, following a widespread Government consultation.

Silent calls are generated by call centres that use automated calling systems (ACS). In some cases the system dials more numbers than there are staff available to speak to the person who picks up the phone, resulting in a silent call.

Kevin Brennan, Minister for Consumer Affairs, said:

"Companies who make nuisance calls by abusing automated equipment should face the consequences, which is why those who break the rules will be fined with a hefty penalty of up to £2m.

"Consumers can be assured that the new fines are definitely more than a slap across the wrist for persistent offenders. I hope our decision will be a catalyst for better business practice, increasing customer loyalty and reducing operational costs for handling complaints."

The new higher penalty will provide the telecoms regulator Ofcom with a greater ability to deter and punish companies that ignore the guidelines in this area. In addition, Ofcom will be reviewing its ACS misuse guidelines to provide clearer advice to operators, benefiting both business and consumers.

This work follows commitments in the Digital Britain and Consumer White Papers to increase the maximum penalty for companies causing unnecessary harm to many consumers across the UK by making excessive silent calls.

The new penalty will be amended as soon as possible in the Communications Act 2003 by statutory instrument.

Notes to editors:

Ofcom research into the issue, carried out between October and December 2009, found that 47% of adults felt ‘very inconvenienced’ by silent calls and 32% were ‘very concerned’. During the same period, 3,500 consumers contacted BT’s Nuisance Calls Bureau and in February 2010, over 14,000 callers to the Bureau listened to recorded advice on silent calls. OFCOM received over 6,500 complaints about silent calls in 2009.

The current framework for regulating silent and abandoned calls is set out in the Communications Act 2003. The Act provides powers to Ofcom to take action against those who persistently misuse networks or services in a way that causes, or is likely to cause, unnecessary annoyance, inconvenience or anxiety, but which falls short of a criminal offence.

On 10 September 2008, Ofcom published a revised statement of policy on the persistent misuse of an electronic communications network or service, which tightened up the rules concerning the usage of ACS. The previous penalty of £5,000 was increased to £50,000 in April 2006. Ofcom has since then successfully pursued 9 cases against companies which were found to have generated unacceptably high levels of silent and or abandoned calls. It has issued financial penalties in each case and also has an ongoing enforcement programme.

The Government consultation was launched on 26 October 2009 The full document can be found at: http://www.bis.gov.uk/Consultations/maximum-penalty-for-misuse-of-an-electronic-comms-network?cat=closedawaitingresponse

Apart from silent and abandoned calls other types of persistent misuse include for example number scanning, misuse of call line identification facility, misuse for dishonest gain and misuse of allocated telephone numbers. The proposed penalty increase will apply equally to all forms of persistent misuse. The majority of cases are misuse in the form of silent and abandoned calls and therefore the main purpose of this enforcement activity will be to minimise the harm caused by silent and abandoned calls.

Plans to increase the penalties for misuse of ACS were set out in the Digital Britain Report: www. http://www.bis.gov.uk/building-britains-digital-future

OFCOM’s guidelines on persistent misuse of ACS can be found at: www.ofcom.org.uk/consult/condocs/persistent_misuse/statement/.

Numbers consumers can call

BT’s (Easiserve) line where they speak to an advisor about silent calls

0800 661441

Ofcom’s complaints line

0300 123 3333.

TPS registration

0845 070 0707

Contacts:

BIS Press Office
NDS.BIS@coi.gsi.gov.uk

Joanna Robotham
Phone: 020 7215 5950
Joanna.Robotham@bis.gsi.gov.uk