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GMTV phone firm fined for quizzes GMTV phone firm fined for quizzes
(20 minutes later)
The company that ran competitions for GMTV has been fined a record £250,000 after viewers lost an estimated £20m in phone-in quizzes.The company that ran competitions for GMTV has been fined a record £250,000 after viewers lost an estimated £20m in phone-in quizzes.
Premium rate regulator Icstis has handed out the largest penalty in its 21-year history to Opera Telecom.Premium rate regulator Icstis has handed out the largest penalty in its 21-year history to Opera Telecom.
For four years, the company selected potential winners before lines closed.For four years, the company selected potential winners before lines closed.
Some 18 million callers were charged when they had no chance of winning, Icstis said, with the average cost of each call put at more than £1.Some 18 million callers were charged when they had no chance of winning, Icstis said, with the average cost of each call put at more than £1.
The regulator described it as "the worst case which Icstis had come across in terms of the numbers of consumers affected and the amount of money at stake".The regulator described it as "the worst case which Icstis had come across in terms of the numbers of consumers affected and the amount of money at stake".
The scandal has already led to the resignations of two GMTV executives and contributed to a crisis of trust in TV in the UK.The scandal has already led to the resignations of two GMTV executives and contributed to a crisis of trust in TV in the UK.
'Reckless disregard'
Cutting corners for the sake of convenience or to boost revenues is simply unacceptable George KiddIcstis chief executive GMTV itself is also braced for a separate large fine from media regulator Ofcom over the matter.Cutting corners for the sake of convenience or to boost revenues is simply unacceptable George KiddIcstis chief executive GMTV itself is also braced for a separate large fine from media regulator Ofcom over the matter.
Icstis chief executive George Kidd said Opera "showed a reckless disregard for the interests of callers".Icstis chief executive George Kidd said Opera "showed a reckless disregard for the interests of callers".
"The consumer harm caused was aggravated by the sheer number of callers who paid to enter the competition but had no chance of winning," he said."The consumer harm caused was aggravated by the sheer number of callers who paid to enter the competition but had no chance of winning," he said.
It was also heightened by "the huge amount of revenue that was unfairly generated from these callers, the length of time over which the practice had been going on and the extensive damage caused to public trust in phone-in competitions", he added.It was also heightened by "the huge amount of revenue that was unfairly generated from these callers, the length of time over which the practice had been going on and the extensive damage caused to public trust in phone-in competitions", he added.
"Today's adjudication sends a clear message to any company offering phone-paid services - your absolute responsibility is to the public who use your services."Today's adjudication sends a clear message to any company offering phone-paid services - your absolute responsibility is to the public who use your services.
"Cutting corners for the sake of convenience or to boost revenues is simply unacceptable and has serious consequences." The BBC's Panorama programme exposed failings at GMTV"Cutting corners for the sake of convenience or to boost revenues is simply unacceptable and has serious consequences."
Opera must implement suggestions from an independent team investigating its "systemic failures" - or face a 12-month ban from running competitions.
It must also refund callers in full if Icstis is not satisfied by the current refund scheme.
Opera and GMTV are already offering refunds and free prize draws to viewers who lost out.
Opera has previously apologised unreservedly and said it had overhauled its procedures "to ensure this never happens again".
'Serious errors''Serious errors'
GMTV has previously admitted "serious operational errors in the running of its competitions" and terminated its contract with Opera Telecom. The problems began in January 2003 and lasted until March 2007, when they were uncovered by the BBC's Panorama programme.
GMTV has admitted "serious operational errors in the running of its competitions" and terminated its contract with Opera.
This year has seen a succession of revelations about competitions on TV shows.This year has seen a succession of revelations about competitions on TV shows.
These have included Richard and Judy on Channel 4, where viewers were urged to call the You Say, We Pay quiz when lines had shut.These have included Richard and Judy on Channel 4, where viewers were urged to call the You Say, We Pay quiz when lines had shut.
Icstis imposed a £150,000 fine on Eckoh, the company that had operated the service. Icstis imposed a £150,000 fine on Eckoh, the company that operated that service.