Ref: 38/03
Date: 26 June 2003

Individuals or companies who make nuisance calls could, in future, risk fines of up to £5,000 and be required to pay compensation.

Oftel has today issued a consultation setting out how it could exercise the new powers set out in the Communications Bill to address the problem of nuisance calls. This will allow Oftel to be prepared if the current timetable for the Bill is met.

Telecoms operators deal with a significant number of complaints about nuisance calls each year.

The type of calls that could be addressed by these powers include:

– silent calls or short duration calls which are abruptly terminated before they are answered;
– calls that mislead the user into returning a call which my be charged at high rates; and
– automated calls that simply contain recorded messages for marketing purposes.

The new powers set out in the Communications Bill will update existing licence conditions that become obsolete when the new European framework comes into force.

David Edmonds, Director General of Telecommunications said today:

"I welcome these new powers that provide increased protection for consumers against nuisance calls which are at best annoying and at worst cause anxiety and stress.

"For the first time the regulator will have the power to fine the people who make these calls and require them to pay compensation.

"This will be an important deterrent to put a stop to those who misuse phone systems in this way."

Notes to editors

1. Statement of policy on the persistent misuse of an electronic communications network or electronic communications service has been published today and is available on Oftel's website from www.oftel.gov.uk/publications/consumer/2003/mis0603.htm. Hard copies are available to the media from Oftel's Press Office, telephone 020 7634 8991, and to the public from Oftel's Research and Information Unit, telephone 020 7634 8761.

2. The closing date for consultations is 17 July 2003.

3. These powers are set out in the Communications Bill and enable the Director or Ofcom to regulate forms of behaviour which are considered to represent persistent misuse of a network or service.

The type of calls covered by these powers include those that are likely to give rise to annoyance, inconvenience or anxiety.

The powers will not normally be used where there is an alternative legal remedy. for example data protection legislation or criminal sanctions.

4. The telephone and fax preference services allow consumers to opt out of receiving unsolicited sales and marketing calls. For further information contact: 0845 070 0707 for the Telephone Preference Service, and 0845 070 0702 for the Fax Preference Service.

5. People receiving malicious or nuisance calls should, in the first instance, contact their telephone operator.