Home > Consultations > Consultation Documents > Participation TV > Statement

Statement

Executive summary

Background

1.1 This Statement sets out new measures to protect consumers and to help restore confidence in programmes that invite members of the public to participate in them via telephony, the internet or any other form of communication.

1.2 The treatment by broadcasters of viewers’ and listeners’ communications with them gave rise to serious public concern through much of 2007. Instances of poor practice, mostly concerning premium rate telephone services (PRS), led to serious breaches of Ofcom and PhonepayPlus (PP+) rules. Large fines have been issued by both bodies: Ofcom has imposed fines on television broadcasters totalling more than £3.5m; PP+ has levied fines against service providers totalling £580,000.

1.3 Because of the number and apparent seriousness of the breaches, in March 2007 Ofcom commissioned an Inquiry, led by Richard Ayre, a non-executive member of Ofcom’s Content Board (‘the Inquiry’). The Inquiry concluded that systemic problems were apparent in television broadcasters’ use of PRS and made several recommendations covering PRS and other means of communication.

1.4 Ofcom consulted on the Inquiry’s recommendations between July and October 2007 in Participation TV: protecting viewers and consumers, and keeping advertising separate from editorial (‘the Consultation’). This Statement details the outcomes of the Consultation.

1.5 The Consultation also considered, as a separate issue, the separation of editorial and advertising material in respect of programmes predicated on the promotion of PRS. That issue is not addressed in this Statement and is being considered separately (as Participation TV Part 2) – Ofcom expects to publish a further document on Part 2 shortly.

New requirements for television broadcasters

1.6 Ofcom will be implementing almost all of the Inquiry’s recommendations for television broadcasters following the Consultation. These divide into two core recommendations regarding broadcasters’ fundamental responsibilities and a number of others concerning matters of guidance.

1.7 Ofcom has concluded that TV broadcasters’ licences should be varied to make licensees directly responsible for communication with the public where the mechanism of communication features in programmes. This will mean that broadcasters assume responsibility for the management of all communications with the public, where these are publicised in programmes. This general responsibility applies to any means of communication. It will cover all forms of telephony, email and other internet-based communication, post and so on.

1.8 In addition to the above broad obligation, the licence variation will introduce a system of third-party verification where PRS is used for competitions or voting schemes. It is clear from Ofcom’s investigations that all too often broadcasters themselves have not fully understood the PRS systems used in their programmes and therefore not anticipated potential problems. Verification by an independent third party will greatly enhance broadcasters’ confidence – and, more importantly, public trust – in PRS-based voting and competitions. It will also alert broadcasters quickly to deficiencies in compliance. The requirement for verification is restricted to PRS voting and competitions because abundant evidence points to these as being the principal source of problems.

1.9 Ofcom has designed the verification system to be flexible and expects that licensees of differing sizes will all be able to meet their new obligations. Some respondents argued that the introduction of a verification scheme would be too burdensome. We do not agree: our view is that if broadcasters are not willing to implement suitable oversight for these revenue-generating PRS applications they should not use them.

1.10 In addition to the licence variation, Ofcom will publish new guidance for broadcasters in respect of the new licence condition and also the requirements of the Broadcasting Code. The guidance will cover:

• the stage at which shortlisting or selecting winners or successful entrants should begin;
• the need to withhold results where significant failures of process are identified;
• further information for users of ‘red button’ entry and voting;
• the need to reveal puzzle methodologies; and
• the need to improve pricing information.

PhonepayPlus: prior permission

1.11 PhonepayPlus (PP+) is introducing a prior permission scheme for PRS service providers who provide services to broadcasters. (Some services, such as live chat services, have for a long time required prior permission because of the nature of the service provided, rather than its provision in broadcasting. Those arrangements will continue.)

1.12 In summary, PP+ will be introducing prior permission requirements in the following broad areas:

• Connectivity and capacity
• Conduct
• Coherence

Radio

1.13 The Inquiry specifically examined television broadcasters and viewer communication and participation. It did not cover radio, although radio interests were alerted to it. Because of insufficient data Ofcom did not issue an Impact Assessment for radio with the Consultation. Some respondents to the Consultation argued that Ofcom should not include radio licensees in its consideration of licence amendment. In view of these facts, Ofcom is not seeking to vary radio broadcasting licences at this time but will be consulting on extending the provisions to radio later in 2008.

Implementation

1.14 Under Section 4(1) of the Broadcasting Act 1990 (the “1990 Act”) Ofcom has a wide discretion to set licence conditions including such conditions as appear to Ofcom to be appropriate having regard to any duties under the Communications Act 2003 (the “2003 Act”) and conditions providing for such incidental and supplemental matters as appear to Ofcom to be appropriate. Under Section 3(1) of the 2003 Act it is the principal duty of Ofcom to further the interests of citizens in relation to communications matters and to further the interests of consumers in relevant markets where appropriate by promoting competition.

1.15 Under Section 3(4) of the 1990 Act Ofcom can vary a licence, and therefore include new conditions, provided the licensee has been given a reasonable opportunity to make representations about the proposed variation. This power also is reflected in broadcasters’ licences.

1.16 Ofcom will therefore very shortly be formally notifying TV broadcasting licensees of the intended variations. Licensees will have four weeks in which to make representations to Ofcom.

1.17 After that period, if the variation is confirmed licensees will be notified of when the variation to their licence will take effect. It is intended that the wide responsibility for communications from viewers will take effect immediately, but the narrower verification obligation will be effective a further period, probably of three months. This longer period is to allow licensees to take the necessary steps to implement the verification obligation.

1.18 Although the verification condition does not in general require that licensees send reports to Ofcom other than at Ofcom’s request (likely to be in the event of an investigation), we will be operating a spot checking programme for the first 12 -18 months following the introduction of the condition. This is to allow Ofcom to be satisfied that suitable systems are in place and generally that the condition is being complied with.

• Participation TV Part 1 Statement [pdf]
  Full Print Version

Back to top