Regulator opens a public consultation over rogue app charges

THE PREMIUM RATE phone regulator Phonepayplus is opening a public consultation after it was revealed that a number of smartphone apps charge people without their knowledge.

Phonepayplus brought in a new outcomes-based Code of Practice on 1 September, along with a guidance document for how it will most likely interpret some of the new rules. Now it is extending the process further by opening a 10 week consultation with the public on the issue of app prices.

The issue came onto the radar of the regulator after a number of rogue apps were revealed, including one that, without the user's consent, automatically sent and received text messages costing £4.50 each. This app has since been shut down by the regulator, according to the BBC.

Phonepayplus wants to tighten rules for apps so that this kind of unscrupulous behaviour won't happen. It identified four key areas that need to be addressed: a lack of transparency, security problems, poor complaint handling, and a lack of a straightforward opt-out option for premium rate services billing.

Its proposals are that app makers must provide the price up front before the user buys the app. It should also apply to free trials that automatically end with a purchase. Purchases of virtual currency should be made clearer. Apps should not contain any kind of malware, such as the kind used to make automatic charges without consent. Contact details should be provided for complaints and these should be resolved quickly and easily. A method to end premium rates services billing should be made available for those who wish to cancel their subscription to a service.

Phonepayplus wants feedback from the public on its proposals. Anyone who wants to let the regulator know their thoughts has until 5 December to do so. µ