Does This Mean Trouble 4 Jamster UK?

musicfactory · 29-06-05

I'm quite worried now after reading thew following news report..
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Probe launched into "Crazy Frog" sales tactics
LONDON (Reuters) - The regulator that oversees premium-rate phone services is launching a probe into the wildly popular "Crazy Frog" mobile phone ringtone, after complaints that it dupes children into signing up for an expensive subscription plan.

Crazy Frog, which made history last month as the first ringtone to reach the top of the pop charts, is part of a package of ringtones created by mobile content company Jamster, and sold through a mobile service provider called MBlox.

The regulator, known as Icstis, said it has received more than 100 complaints that the Crazy Frog sales terms are misleading and difficult to understand.

Consumers who may think they are buying a single ringtone are in fact signing up for a subscription plan. Each week, they receive a new text message for which they are charged 3 pounds, enabling them to download another ringtone.

Crazy Frog has been promoted with a heavy TV advertising campaign that displays the terms of sale at the bottom of the screen.

A voiceover states: "Get the Crazy Frog ringtone and more as part of the Jamster clubs."

Jamster is already facing a lawsuit in California from a woman who has accused the company of fraud and false advertising.

"If it's a subscription service, that has to be made perfectly clear," said a spokesman for Icstis. "There's a concern that the use of the word 'club' doesn't make clear that you're subscribing to a subscription service."

The regulator has the power to levy fines of up to 100,000 pounds and shut down services that do not comply with its guidelines. Crazy Frog may also face additional restrictions if it is found to be targeting children under the age of 16.

"Because it is a cartoon character, to us that seems arguably targeted at children," the Icstis spokesman said.

Jamster, a company that has been at the centre of the rapidly expanding global ringtone market, is owned by VeriSign Inc.

A spokesman for Jamster said it was cooperating with Icstis "to ensure that our advertising and product offering remain as transparent as they can be."

He noted that consumers joining the Jamster "club" receive a free text confirmation message, with the cost, terms, and details on how to stop the service.

MBlox said in a statement that "there is no suggestion that in its own activities mBlox has breached any operator or Icstis guidelines ... mBlox has no direct control over any clients' marketing or commercial activities."
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I hope Jamster sort this out and don't get "shut down!"

Ultralife · 29-06-05

I think it is because they are not happy with one sale and want you to keep buying and join expensive clubs, who honestly wants to spend upto £20 a month on tones ect and that the least I think you pay if you sign up

andymoo · 29-06-05

if someone is too thick to read the small print then they deserve to get a huge phone bill. if you join one club = £3 a week, if you join 10 clubs = £30

£3 a week for the amount of content they get is a good deal!

Ultralife · 29-06-05

What you have said is true about reading the print, children dont, they just join, as for the £3 being good value, I am not a member so cant say either way, I still think £12 a month for ringtones is alot, buying one single tone every few months of so yes, ongoing memberships like this are bound to cause upset.

lakrasia · 29-06-05

This isn't the first time Jamster have been criticised for this. To be honest, it would ease my conscience if they made the cost to subscribers a lot clearer, which is the most likely outcome.

Bod · 30-06-05

as the misses watched BB alot while im working on the PC, the adverts where on all the time, while looking at them, there where a few others who didnt give proper info in my eyes or they where very small.

The one 84888 is one and the other with 8***8 cant remember the number but i guess its the likes of them making it bad for others....

If the case of jamster which it has been said before, you have to check the box and its there, but how many people read the small print, i know i dont.

I think its the customers that are at fault in many cases but its the companies that bare the brunt as they are forced with either a fine or shutdown.

DutchRomano · 30-06-05

I'm not a legal expert but the key might be this:

Quote:

Crazy Frog may also face additional restrictions if it is found to be targeting children under the age of 16.

Ultralife · 30-06-05

And lets be very honest here, how many people over 16 want animals on their phone, cartoon types anyway - and ringtones that if I was a girl of 14 I would love...sadly I am male and over 30...and they have no appeal to me...even though the Frog made me laugh at first.....

eliteshops · 30-06-05

I just got fed up with the whole thing after the CF ad appeared 3 times in one advert break.

I suppose if they show it often enough people will switch off to the small print

tomj · 30-06-05

agreed!

totally hahrd to understand their terms and how u will be billed.......I had to look really really hard to find their terms.......

got a feeling they will be spanked severly shortly :eek:

T

Vivid · 30-06-05

What is the worst that ICSTIS could do?

Certain companies get shut down and have their numbers suspended fairly often.

Worst case scenario:
They pay £100,000 which is pocket money, setup a similar shortcode to get what little they can off of mistyped returning customers and then start up again.

What ICSTIS really need to do is change their policy on the stop codes as having a specific code in a certain case ("stop" all lowercase) is not acceptable. If a business wants to run a hugely lucrative subscription service then they should provide enough customer support to not have to automate the cancelling of the "club". The way I saw it was when someone was pleading to be let out of their contract and were texting in "please stop" etc then this is considered contact from the user and allows for initiating another reverse SMS. e.g. on the adult lines, if someone texts in anything, they have an upper limit of 3 premium reverse SMS charges without reply so asking to leave the subscription incorrectly will probably result in about £9 worth of charges.

I am not referring to any company in particular and do not use adult lines myself

andymoo · 30-06-05

But ICSTIS are now proposing along wiht the DTI to up the max fine from 100k to 250k

I suspect that is what Jamster / Mblox will be hit with if they get stung but to be fair to Jamster the ad does say CLUBS the voiceover says CLUBS and the small print on the screen is clear.

Would I be right in thinking it also says 16+?

I think there are a lot of people who have seen the ad, not thought to read the small print and think Jamba is to blame for their own stupidity.