delete Information to be given to OFCOM before carrying out a regulated activity
The Regulation of Premium Rate Services Order 2024 establishes OFCOM as the statutory regulator for premium rate services (PRS), replacing the previous self-regulatory regime under the Phone-paid Services Authority's Code 15. It defines 'controlled PRS' based on pricing thresholds (5.833p+ per minute or 10p+ single charge), categorizes services (chatline, sexual content, ICSS, subscription), and imposes registration requirements on PRS providers (intermediaries, merchants, network operators). The Order requires registration with OFCOM, risk assessments for arrangements, security measures for payment platforms, complaint handling procedures, vulnerable consumer protections, and payment of administrative charges by network operators. It extends across England, Wales, Scotland and Northern Ireland, coming into force 1st February 2025.
This Order imposes significant regulatory burdens on a sector that can be adequately governed through market mechanisms and existing consumer protection law. The mandatory registration requirement with OFCOM, administrative charging regime, and compliance costs create barriers to entry that favor established incumbents over new market participants. Premium rate services are a mature market where consumers can access information about services through app stores, reviews, and price comparison. The Order's complexity — with detailed definitions, exemptions, risk assessment requirements, and enforcement mechanisms — suggests regulatory overreach when simpler principles-based protections would suffice. The previously existing PSA Code 15 regime provided industry-specific expertise while avoiding statutory compliance costs. OFCOM's general powers under the Communications Act 2003 are sufficient to address consumer harm without this prescriptive framework. The transitional provisions admitting existing players further demonstrate this serves incumbents rather than enabling competition.