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31|10|05

Ofcom action on silent calls

Ofcom today announced a series of measures to take action against silent calls and published the outcome of a related investigation into seven companies.

Silent calls occur when automated calling systems used by call centres for telemarketing, market research, debt collection and other purposes, generate more calls than the available call centre agents can deal with. When the person dialled answers the telephone, there is no agent available, resulting in silence on the line. These abandoned calls can cause significant anxiety and annoyance.

Sections 128-131 of the Communications Act 2003 give Ofcom power to take action against persistent misuse of electronic networks or services, including silent and abandoned calls.

Ofcom has amended its policy on persistent misuse to combat the problem of silent calls. Ofcom’s revised policy sets out a series of requirements for organisations using automated calling systems, including:

• Any abandoned calls must carry a recorded information message which identifies the source of the call and offers the person called an opportunity to decline further calls from that source;
• Calling line identification (CLI) must be presented on all outbound calls from call centres using automated calling systems. CLI allows people to dial 1471 and access the telephone number of the person or organisation calling them;
• Telephone numbers dialled then abandoned should not be called again by that organisation’s automated calling system for at least 72 hours, unless a dedicated operator is available to take the call;
• Abandoned call rates must be below three per cent of total calls for any 24 hour period for each campaign. This is a lower threshold than existing published industry codes which require a five per cent limit, and is intended to require operators to manage their systems more effectively; and
• Records must be kept to demonstrate compliance with these requirements.

Additionally, Ofcom has asked the Government to increase the maximum penalty that Ofcom can impose from £5,000 to £50,000 for each breach of the rules.

The new requirements target a consistent approach to, and increased transparency in, the use of automated calling systems. This will help Ofcom to monitor and enforce compliance across the industry. Ofcom will apply these policies to all UK companies commissioning services from any call centre, whether located in the UK or overseas.

Ofcom Chief Executive Stephen Carter said: “Excessive abandoned calls have become a real problem. We believe new fines and new rules, backed by firm enforcement action, are appropriate and necessary.”

Ofcom is seeking views on the revised policy by 9 January 2006. The full consultation document is published at: http://www.ofcom.org.uk/consult/condocs/misuse/

Ofcom investigation

Ofcom has today also completed its investigation into seven companies in relation to silent calls. Ofcom's investigation found that silent or abandoned calls rates were higher than three per cent in many cases.

The closing Competition Bulletin on Ofcom’s website sets out that:

• Ofcom has issued notifications to four companies: Thomson Directories Ltd, Ant Marketing, Fax Information Services Ltd and Promote-IT Ltd. These organisations are required to reduce their abandoned call rate to below three per cent and provide monthly reports to Ofcom on their performance until May 2006;
• Ofcom has secured legally binding written undertakings from The Listening Company Ltd committing to the same performance and reporting requirements;
• Firestorm Marketing Ltd has stopped accepting contracts to send unsolicited fax communications;
• Toucan Telecom’s conduct did not constitute persistent misuse.

Full details are published in the closing Competition Bulletin at: http://www.ofcom.org.uk/bulletins/comp_bull_index/comp_bull_ccases/closed_all/cw_835

Ofcom has today also updated the Competition Bulletin on its previous investigation into silent calls by MKD Holdings (Kitchen’s Direct) (‘MKD’). Monthly reports from MKD to Ofcom show compliance with Ofcom’s previous notification. MKD have also provided written undertakings committing them to comply with the new requirements announced by Ofcom today.

The updated Competition Bulletin on MKD is published at: http://www.ofcom.org.uk/bulletins/comp_bull_index/comp_bull_ccases/closed_all/cw803_new

Ends.

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