EU Concludes 18-Month Investigation Into Ringtone Scams; Nine Companies Fined
The EU has concluded an 18-month long investigation into 301 websites selling ringtones and wallpapers, which has resulted in Italian authorities fining some of the industry’s top brand name companies in the space, The Register reports.
Most of the issues revolve around how much the ringtones cost and whether those prices or subscriptions were easily found or explained on the web site. The EU said in a release it was able to resolve issues with 210 of the websites. Of those, 159 websites have been corrected and 54 websites have gone out of business.The EU said it will continue to work on the remaining 91 cases with other actions planned in 2009 and 2010. The investigation kicked off in June 2008 and 27 Member States, Norway and Iceland participated. As part of the investigation, the EU said today that the Italian authorities imposed fines of 2 million Euro ($3 million) on nine companies that were in breach of the law. Those companies included: Telecom Italia, Vodafone (NYSE: VOD), Wind, Dada, Zed, H3G and Zeng, Fox Mobile and Tutto gratis.
The EU found that over half of these websites targeted children. In a release, EU Consumer Commissioner Meglena Kuneva said: “This EU wide investigation was a direct response to hundreds of complaints coming in from parents and consumers from many different EU countries. Young people should not have to fall victim to scams like misleading advertising that lure them into ringtone subscriptions they thought were free. And parents should not find nasty surprises in their phone bill, when their children by accident have signed up to more than they have bargained for.”
Of the offending web sites, there were three main problems:
—41 percent had incomplete information about price, and often times was not referred to at all - until the consumer received their phone bill. In addition, the word subscription was not clearly mentioned, even though users were signing up for a recurring payment.
—75 percent of the websites lacked contact information, which is against EU law.
—35 percent of websites were misleading, and often times advertised services for free even though consumers were charged.
Posted In: Entertainment, Music, Legal, Regulatory, Media & Publishing, Kids & Teen Content, Mobile, Countries, Europe, UK

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