Document

REPORT OF THE ADJUDICATOR
WASPA Member
iTouch | Buongiorno
Service Type
Advertising
Source of Complaints
WASPA Monitor
Complaint Number
5564
Date lodged
14 January 2009
Code of Conduct version
6.2
Complaint
The WASPA Media Monitor lodged this complaint after testing a service provided by the
WASPA member and coming to the conclusion that the service breached the Code in that it,
inter alia, resulted in the automatic initiation of subscription service through a consumer visit
to a WAP site. The Monitor regarded the matter as urgent and request that the WASPA
emergency procedure be invoked.
The sections of the Code which the Monitor, after conducting two tests, identified as having
potentially been breached were: 3.1.1, 3.1.2, 3.7.1, 4.1.1, 5.1.6, 6.2.2, 11.1.1 & 11.1.4. The
steps taken in testing the service are set out in detail below.
An emergency panel convened on 16 January 2009 and, after considering the matter, the
following Emergency Procedure Notice was issued to the WASPA member on 20 January
2009:
“Please note that the Emergency Panel has ordered Buongiorno UK/iTouch:
- to immediately withdraw all advertising, in any format, which makes
use of the keyword "free";
- to immediately issue instructions to the relevant channels to
prevent any further airing of such adverts from the date of
this notice;
- to refrain from levying any charges whatsoever on any customer
Page 1 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
SMSing the word "free" to the service provider in response to
any advert;
- where it is not possible to prevent such charges from being levied,
to refund any and all charges levied after the date of this notice;
- to immediately suspend the Sexy Cherry Club service until such time
as it complies fully with the WASPA Code of Conduct and WASPA
Advertising Rules; and
- to immediately suspend any advertising of Sexy Cherry Club service
on Waptrick.com or on any other forum or media until such time as it
complies fully with the WASPA Code of Conduct and WASPA Advertising
Rules.”
The WASPA member responded to the emergency panel ruling on 20 January 2009,
requesting that the Secretariat clarify a procedural matter which was duly done on 21 January
2009. A formal response was filed on the same day and the matter now falls for formal
Adjudication.
Member Response
[Adjudicator’s note: there is a degree of non-alignment as between the breaches alleged and
the responses provided by the member but the Adjudicator is satisfied that the issues have
been sufficiently aired.]
The Member’s response compromised both a section by section rebuttal of the alleged
breaches as also a response to the testing procedure used by the Monitor. In order to provide
the proper context for this adjudication the testing procedure and the member’s comments
relating thereto are set out side by side below after which the member’s response to the
allegations of non-compliance is recorded.
A diagram provided by the WASPA member and referred to in their comments is set out
directly below this table.
Monitor:
Member’s comments
Test 1
Waptrick.com is an independent content provider
Using a WAP enabled phone I went to waptrick.com,
who serve as an online marketing portal for different
I clicked on video clips, and then onto sex videos.
organizations. It is clear that organizations are using
And this screen popped up:
the Waptrick portal to advertise their services. As in
You are about to view a page with adult content.
the screen shot provided, the following service
Page 2 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
Please review the agreement below. - I am an adult
providers are using waptrick, over and above
being at least 18 years old - I warrant that it is legal
iTouch - Buongiorno: Mogasm, Cointel, Airtime
to view adult material in my locale and country.
Club. None of the above mentioned service
I then clicked I AGREE. I clicked on the link for
providers, iTouch | Buongiorno included have any
Hardcore porn videos And then clicked on Hard XXX
doings with the content provided on the Waptrick
vides I clicked on a the first video called: Jennifer Lo
Portal
fuck so hot, then clicked on the link download
Adult verification on the WAP site is a one click
Jennifer Lo fuck so hot 05 jgp video free
process, whereby the user is agreeing to the adult
viewing clause. The content displayed in the sex
videos category should be rated according to the
adult content rating categories. The services was
tested on the MSISDN 0714138681. This is a
Vodacom number and should not be exposed to
content that is over the 1.7 rating. After searching
through 26 hard XXX videos the Jennifer Lo Fuck
so hot 05 was found. As can be seen by the screen
shot below the video was successfully downloaded
on a Vodacom number. If the hardcore images are
being used as a hook then the content delivered
should only be of a 1.7 rating, this content offering
and the delivery thereof is not by any means linked
to the iTouch | Buongiorno service.
Waptrick should be held responsible for the
displaying of adult advertising on the homepage of
their wapsite before the user has agreed to view
adult content. We as the advertisers do not have a
say where on the wapsite our adverts will be
served, we provided the criteria and pay for the
adherence thereof that they are placed after the
AVS.
2.
The video was then downloaded to my
As mentioned the video was successfully
phone. I left the wapsite to check my balance. My
downloaded in our test case as well. This video was
new balance was R252.83 so a total of R11.13 was
displayed as FREE as can be seen below. When
deducted for content that was meant to be free.
starting with this test on the prepaid Vodacom
When browsing through the sex videos, and clicked
MSISDN 0714138681 the airtime balance was
on hardcore porn… I noticed a subsection called:
R110.32 after browsing for quite some time to find
Rape Fantasies. There were 19 different videos of
the said video the balance was R106.92. A total of
rape fantasies. This type of content is in breach of
R3.40 was deducted for wap browsing and no
the Code.
deductions were made for the video. As previously
Page 3 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
mentioned, iTouch | Buongiorno does not have any
involvement with the content displayed, downloaded
or purchased off of the Waptrick portal.
The Rape Fantasy videos are in breach of the
WASPA code of conduct, the network content rating
regulations as well as the law. Based on
this Waptrick and its content providers should be
held responsible as this has NO doing with iTouch |
Buongiorno. We are one of the service providers
that have used Waptrick as an advertising portal.
We have since removed all advertising off the
Waptrick portal and have reported them and the
illegal content displayed to the relevant advertising
network. We believe Waptrick and their service
provider are in breach of the following clauses:
3.1.2 Members are committed to lawful conduct at
all times.
TEST 2: (14 Jan) Starting balance: R188.70. On a
Please clarify as to whether the access to Waptrick
WAP enables phone I went to the bookmark:
had been exited at this point or if the banner
displayed opposite was in fact advertised | served
http://wap.blinko.co.za/lp=advertisment/
on the waptrick site? From the above mentioned
iPhoneWapStr04.wml?
statement this is unclear and incomplete.
serviceId=sexy_scherrys&mk=sca_b=z612_3871
[Adjudicator’s note: it seems clear that this was an
DOUBLE DILDO FUCKING with the chance to win a
Apple iPhone. Sexy Cherry Club: Straight licking,
independent exercise and that the Waptrick site was
in no way involved.]
sucking, rubbing, sweating, panting… come peep in
and explore the hidden adventures of these Ever
The banner above is an advertisement banner that
before seen uncensored videos. Click here For the
is clickable. This then directs the user to the landing
most erotic dildo action. I then clicked on the Click
page opposite. This landing page shows the
here link and instantly received two of the same
customer that it is a club they are viewing and
sms’s on my phone. I exited the wapsite in order to
shows them the hook. In this instance, erotic videos.
check my balance and the two messages and my
The landing page clearly states the to the user that
balance was now: R158.56 so a total of R30.14 was
it is a subscription service that is billed at R30 / 5
deducted. These monies were deducted just by me
days and that if they wish to see terms and
clicking on the category and I was automatically
conditions they can visit the wap site. It also clearly
subscribed. And there were no costs displayed.
states that the user agrees that by clicking on the
link they agreeing that they are over the legal age of
18 years.
Page 4 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
The information supplied above is incorrect as it
says “there were no costs displayed”, it also says
that clicking on the link they were “automatically
subscribed” and that “ monies were deducted”. If
the person initiating these tests read the remainder
of the advert they would have seen the price,
subscription confirmation and the T&C’s. There is
no mention of price placing on a WAP advert in the
code. Clause 6.2.5 only refers to the pricing
placement at a premium rated number
With regards to the billing, the user is billed on
subscribing to the service, we do not offer 1 day,
week, month free on the adult service, therefore
billing takes place immediately and every 5 days
thereafter. It is our right as a WASP to bill our
customers. Bellow it can be seen that on the 14
January 2009, the day of subscription at 14:03 we
billed the MSISDN =76 316 0212, R30 (the price of
the service). The additional R0.14c deducted from
the account can only be attributed to wap billing
charges which are from the network and not iTouch
| Buongiorno.
This advertisement has been removed from all
marketing channels as per the sanction made
against the Sexy Cherry service. If a further party at
waspa would like to view the page, the below
mentioned URL can be entered into a mobile phone
and they will see the pricing and confirmation of
subscription and AVS:
http://wap.blinko.co.za/lp=advertisment/
iPhoneWapStr04.wml?serviceId=
sexy_scherrys&mk=sca_b=z612_3871
We do not have any intentions of misleading the
public in any way and therefore have a clause at the
bottom of all our pages stating that “explicit content
is not available to the Vodacom customer. Content
will vary from that which is advertised”
Page 5 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
All advertising is in the process of being rated by the
Film and Publications Board.
The sms I received read: CONGRATS! u r our new
As can be seen above the user received the
Sexy Cherry VIP star, u have access 2 UNLIMITED
welcome message upon subscribing to the Sexy
UNSENSORED HARDCORE From @ just R30/5
Cherry service. As per clause 11.1.7 the code
days. 2 end SMS stops to 31191. But stay & I’ll cum
states: Once a customer has subscribed to a
4 u. Sender: (no name) +27820048352 Received:
subscription service, a notification message must
15:03:40 =4-01-2009
immediately be sent to the customer. This welcome
messages must be clear notification of the following
I then smsed the word STOP to 31191 to end the
information, and should not be mistaken for an
service and received this message: Hey sexy I
advert or marketing message.
didn’t understand =st1:City w:st="on">ur SMS & i
This message gives clear indication as to what
really want u 2 cum join in on the fun so PLEASE
service the user is part of and what their billing
call 0214178002 (Std rates) Hurry im waiting.
denominations would be. We have no intentions of
Sender: (no name) +27820048352 Received:
misleading the public as we felt our unsubscribe
15:14:20 14-01-2009 When checking my balance
keyword was sufficient as it contained the word
after, 50 cents had been deducted for receiving that
STOP as mentioned in 11.2.2 Customers must be
message. I then smsed the word stops to 31191 and
able to unsubscribe from any subscription service
this cancelled my subscription, another 50 cents
via sms using no more thank 2 words one of which
was deducted. The word “stops” is also in breach of
must be stop. We felt that one work containing stop
the Code.
would suffice. To show we do not wish to
contravene the code or mislead the public we have
changed our unsubscribe keyword which can be
seen above and can be retested if WASPA feels the
need.
The person completing these tests received an error
message as they smsed STOP to the short code
and not STOPS as stated in the welcome
messages. The cost of R0.50c for every message
sent is a bearer fee and as a cost of the networks
not iTouch | Buongiorno. As stated in 11.2.3 the
STOP request described above must be charged at
the lowest tariff rate available. This is currently
being done by iTouch | Buongiorno.
The above statement “When Checking my balance
after, 50 cents had been deducted for receiving that
message” is incorrect as none of the South African
networks provide MT billing and therefore it is
Page 6 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
impossible for iTouch | Buongiorno to do. The
R0.50c was deducted a second time then the
person completing these test resent the correct
unsubscribe keyword to the short code
Page 7 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
Turning now to the WASPA member’s direct responses to the claim that it had breached the
specified provisions of the Code.
3.1.2. Members are committed to lawful conduct at all times.
We do not feel that we have been unlawful and we do not wish to mislead the public in any
way. The content that has been raised with regards to being unlawful was content that was
displayed, and sold via Waptrick.com and their service provider, ie: Rape Fantasies. We at
iTouch | Buongiorno have no doings with this content by any means. Our advertising has
subsequently been removed from the Waptrick wap site due to the illegal content displayed
and has gone for classification at the film and publications board. We have also made it clear
in advertising that the content displayed will vary from the content that is delivered to
Vodacom customers to ensure that we are within the network content rating guidelines.
11.1.4. Customers may not be automatically subscribed to a subscription service as a result
of a request for any non-subscription content or service.
As mentioned previously our advertising pages clearly state that it is a subscription service
and will be billed at R30 / 5 days. The content displayed on Waptrick being of a “free” nature
is not content provided by or supplied by iTouch | Buongiorno and is therefore not used as a
hook for our acquisitions.
8.1.3 Members must take reasonable steps to ensure that only persons of 18 years of age or
older have access to adult content services. Explicit confirmation of a users age must be
obtained prior to the delivery of an adult content service
We have been informed by our advertising channels that adverts of an adult nature are
served only to sites that request adult verification. (letters of this confirmation are currently
being obtained and will be sent through to the WASPA secretaries upon receipt). This means
that before the customer has access to the advert served, he / she will have to confirm that
they are over the age of 18 by agreeing to the wapsites AVS clause. Further to this
confirmation the user agrees then subscribing to the Sexy Cherry service that they are of the
minimum age of 18. This is mentioned on the advertised page below the subscription link. We
agree to add a further notice at the top of the page instructing the user that they need to be at
least 18 years of age to access the content that will be sent to them in the subscription. We
have been unable to find where in the code of conduct does it mention that the customer
clicking on a link to agree his age is an insufficient AVS process and we, iTouch | Buongiorno
keep record of the customer agreeing and clicking on the link. Further to this upon
subscription the customer is sent a welcome messages we will include in this welcome
message the 18+ restriction age.
Page 8 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
11.2.2 Customer must be able to unsubscribed from any subscription service via sms using
no more than two words on of which must be STOP
We did not believe that our unsubscribing keywords were in breach of the code as the above
mentioned clause stated no more than 2 words on of which was to be STOP. We had
implemented STOPS (for STOP =TRAIGHT). When the person smsed in the incorrect
unsubscribe keyword an error message was sent to them stating: “Hey sexy I didn’t
understand ur SMS & i really want u 2 cum join in on the fun so PLEASE call 0214178002
(Std rates) hurry im waiting.”
This shows that we did not ignore the request from the customer but rather sent them a
message to help them. This has since been changed to STOP S with a space to show that it
is two separate words. This has been implemented and all messages being sent to customers
now include the new unsubscribe keywords. This was in effect as of 20 January 2009.
We have suspended the service and stopped all advertising, based on the above mentioned,
we feel we are no longer in breach and our service can be unsuspended subject to
confirmation from the WASPA secretaries and panel. All advertising will be adjusted
accordingly before being sent to market.
Further developments
The above response was filed by the WASPA member after it received the Emergency
Procedure Notice. In response the Secretariat advised as follows:
“On the basis of the considerable efforts that iTouch has made to address the concerns
raised by the emergency panel review of complaint 5564, the WASPA Secretariat is of the
view that iTouch has complied with the requirements of the panel ruling, and that there is
no grounds for the continued suspension of the Sexy Cherry Club service.
We note that this complaint will now proceed through the usual formal complaints process
and will be reviewed by an independent adjudicator.”
In accordance with this a formal complaint notice was sent to the WASPA member who
chose not to file anything further.
Sections of the Code considered
In addition to those set out above, the following sections of the WASPA Code of Conduct
were considered:
2.13. An “information provider” is any person on whose behalf a wireless application service
provider may provide a service, and includes message originators.
3.1.1. Members will at all times conduct themselves in a professional manner in their dealings
with the public, customers, other wireless application service providers and WASPA.
Page 9 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
3.7. Decency
3.7.1. Members will not provide any services or promotional material that:
(a) contains a visual presentation of explicit violent sexual conduct, bestiality, incest or rape or
extreme violence which constitutes incitement to cause harm;
(b) results in any unreasonable invasion of privacy;
(c) induces an unacceptable sense of fear or anxiety;
(d) encourages or incites any person to engage in dangerous practices or to use harmful
substances;
(e) induces or promote racial disharmony;
(f) causes grave or widespread offence; or
(g) debases, degrade or demeans.
4.1. Provision of information to customers
4.1.1. Members are committed to honest and fair dealings with their customers. In particular,
pricing information for services must be clearly and accurately conveyed to customers and
potential customers.
5.1.6. Where the words ‘END’, ‘CANCEL’, ‘UNSUBSCRIBE’ or ‘QUIT’ are used in place of
‘STOP’ in an opt-out request, the service provider must honour the opt-out request as if the
word ‘STOP’ had been used.
6.2.2. All advertisements for services must include the full retail price of that service.
Advertising Rules
The following sections of version 2.3 of the WASPA Advertising Rules were considered:
9.2.1 Cost OF ACCESS DISPLAY
9.2.1.1 Formatting Of Access Cost Text:
Access cost text must be of a size that is at least 80% of the largest access number on the
page, or 15 point font size, whichever is the greater. The access cost text must be in a nonserif font
The pricing text must be clearly shown being independent of any other text or image, and not
be placed or formatted in a manner where it may be obscured by other text information,
graphics or marks that may be displayed around it.
9.2.1.2 Position of Access Cost Text
For each unique access number, the full and final cost of the access must be displayed
immediately below, or above, or adjacent to the unique access number or Content access
code in a non-serif font.
The T&C text must be placed close as possible to the unique access number.
Page 10 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
9.2.2.2 Position of T&C display text
For each unique access number, the full and final cost of the access must be displayed
immediately below, or above, or adjacent to the unique access number in a non-serif
font.
This T&C text must be placed close as possible to the unique access number.
9.3.15 SUBSCRIPTION SERVICES:
(i) Must Use The Words “Subscription Service”
If the Content provider is providing a continuous, subscription-like or subscription-based
service, then the words “Subscription Service” must be prominently displayed as per
specification within the advertisement as well as at each Content or service section in the
advertisement where various subscription types are displayed.
No acronym, letter (eg “S”), number, abbreviation (eg “Subs”), icon, or any other mark may be
used as an alternative to the words “Subscription Service” anywhere in the advertisement
when that Content is only available at all and/or at a particular cost as part of a subscription
service.
Decision
3.1.2. Members are committed to lawful conduct at all times.
1. The submissions of the member in this regard are accepted and the conduct of the
member as raised in the complaint is not found to have been unlawful.
2. Neither the Code or the Advertising Rules contain provisions that seek to exercise a
degree of control over members such that they would be sanctioned in respect of other
third party advertising and services aggregated on sites on which they themselves are
third party advertisers.
3. There is furthermore no evidence of the member being aware of the fact that content
which is prima facie illegal in South Africa was being advertised on the Waptrick portal.
4. It should also be noted that Waptrick, as deserving of further investigation as it may
appear to be, is not a member of WASPA not can it be said to fall within the definition of
“Information Provider” set out in the Code. It therefore falls outside of WASPA’s
jurisdiction and WASPA cannot “take steps” against it.
5. This aspect of the complaint is dismissed.
11.1.4. Customers may not be automatically subscribed to a subscription service as a result
of a request for any non-subscription content or service.
6. The advert at the crux of this matter is reproduced below.
Page 11 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
7. The Adjudicator is not able to find that the member is subscribing consumers to its service
as a result of such consumers making a request for any non-subscription content or
service. There is nothing contained in the above advertisement or the procedures
employed by the member indicating that single content purchases are available if the link
(“Click here”) is followed.
4.1.1. Members are committed to honest and fair dealings with their customers. In particular,
pricing information for services must be clearly and accurately conveyed to customers and
potential customers.
8. It does not follow, however, that a user would necessarily be aware that by clicking on the
link they will be subscribed to the member’s Sexy Cherry subscription service or that they
would, after clicking on the link, be charged immediately.
9. An examination of the advert shown above indicates that the member has not complied
with the requirements of section 9.2 of the Advertising Rules with regard to the manner in
which the cost of access text and the terms and conditions have been set out.
Page 12 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
10. The member has not clearly conveyed to customers and potential customers the pricing
information for its subscription service in that it has not made such pricing sufficiently
prominent in the context of the advert and in relation to the positioning of the “Click here”
text.
11. The member is found to have breached section 4.1.1 of the Code read with section 9.2. of
the Advertising Rules.
11.1.1. Promotional material for all subscription services must prominently and explicitly
identify the services as “subscription services”.
12. It is immediately clear from a study of the advert set out above that:
12.1.
the “call to action” is the “click here link”, i.e. this is the subscription mechanism;
12.2.
the words “subscription service” are towards the bottom of the advert, below the
competition details and other promotional items;
12.3.
the words “subscription service” can not objectively be said to be prominently
displayed not can it be said that the advert prominently and explicitly identifies the
service provided by the member as a subscription service.
13. The use of the word “Club” does not save the WASPA member in this regard – WASPA
and the industry has invested a great deal of time and effort in shoring up consumer
confidence in subscription services and they must be explicitly labelled as such.
14. The member is therefore found to have breached section 11.1.1 of the Code read with
section 9.3.15 of the Advertising Rules.
15. The Adjudicator views this breach as being serious in that there is a strong likelihood of
harm to consumers who will not expect to be subscribed to a service (and immediately
billed) through one click on a link.
8.1.3 Members must take reasonable steps to ensure that only persons of 18 years of age or
older have access to adult content services. Explicit confirmation of a users age must be
obtained prior to the delivery of an adult content service.
16. The Adjudicator cannot agree with the submissions of the member as regards this section
of the Code. The second sentence clearly states that confirmation must be obtained prior
to delivery of an adult content service.
17. In the model employed by the member such confirmation could at best be said to be
simultaneous with delivery of the service in that the subscription mechanism and the
confirmation are conflated.
Page 13 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
18. This might be acceptable where the advert explicitly communicates that a potential
customer confirms they are over the age of 18 when clicking the link the indication that
the services are age-restricted are set in the general terms and conditions and not made
explicit in relation to the “Click here” text.
19. The Adjudicator is mindful of the fact that a reasonable person or child viewing the advert
would be aware that any services offered pursuant to it were likely to be of an adult
nature.
20. In the circumstances, however, the Adjudicator finds a breach of section 8.1.3 of the
Code.
11.2.2 Customer must be able to unsubscribed from any subscription service via sms using
no more than two words on of which must be STOP
21. The Adjudicator is not swayed by the arguments advanced by the member with regard to
the use of “STOPS” for its unsubscribe mechanism. The clear meaning of section 11.2 is
that one of the words used must be “STOP” and the interpretation that there is
compliance because STOPS includes STOP is unsustainable.
22. The message received by the Monitor after sending STOP is not particularly helpful as it
requires a further independent action to be taken by the consumer while also containing a
marketing element. The net effect is to obstruct the unsubscribe process.
23. It is difficult to find a rationale for using STOPS rather than STOP which would justify the
inevitable confusion on the part of consumer wishing to unsubscribe. A great deal of time
and effort has been invested in ensuring uniformity in the unsubscribe process across the
industry.
24. In Adjudication 5014 the same member was found to have breached this provision and
the following was stated:
“The service providerʼs failure to provide subscribers with a functioning short code
system, regardless of the complexity of the subscription service, is a breach of 11.2
quoted above. It is not sufficient to return an error message and provide the
subscriber with a call centre number. A purpose of the short code system outlined in
the Code of Conduct is to provide users with a simple and effective option to
terminate mobile services. Introducing a call centre defeats this purpose and
introduces an additional cost both in terms of time and expense which the subscriber
must bear.
It is also a concern that a subscriber is expected to follow this more complex
procedure to terminate a service which begins with an initial week with no charge
Page 14 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
Complaint #5564
followed by a charge of R30 per month thereafter. The additional steps a subscriber
must take to terminate a subscription could well take a subscriber beyond the initial
week and result in a charge to the subscriber for a service the subscriber no longer
desires.”
25. The Adjudicator accordingly finds that the WASPA Member has breached section 11.2.2
and notes that the member has already taken remedial action.
Sanctions:
26. In assessing appropriate sanctions in respect of the breaches identified above the
Adjudicator is mindful of the remedial action taken by the WASPA member in response to
the ruling of the WASPA Emergency Panel. The mitigating effect of such actions are
however softened by the fact that they were reactive and undertaken in the face of the
suspension of the service.
27. The Adjudicator has also had regard to the nature of the breaches which show a wilful
disregard for the provisions and spirit of the Code. Prominently identifying subscription
services is one of the most basic WASPA rules: it is neither new nor difficult to
understand. It applies irrespective of the medium and it applies without exception.
28. As regards the record of the member in formal adjudications under the WASPA Code of
Conduct :
28.1.
The Adjudication in respect of Complaint 4967 sets out the following as one of the
sanctions imposed:
“25.4.7. In addition the SP is fined an amount of R30 000 which is wholly suspended
for 12 months from the date of this adjudication provided that the SP is not found
guilty of breaching s9 of AV 2.3 during this period.”
28.2.
The WASPA member has a relatively high number of adverse adjudications
regarding its subscription services.
28.3.
In Adjudication 5921 the member was ordered to “ensure that its terms of use
are amended in accordance with Rule 9.2 of the Advertising Rules”. The finding in the
current matter suggests this may not have occurred.
28.4.
In Adjudication 5014 the member was found to have breached section 11.2.2
of the Code and was fined an amount of R15 000 for a breach “of section 11.2”.
28.5.
In Adjudication 4413 a different member was fined R30 000 in respect of
broadly similar breaches of the Code and Advertising Rules.
29. It does not appear to the Adjudicator that the sanctions imposed to date have served to
deter future infringements on the part of the member.
30. In the circumstances the following sanction is imposed:
Page 15 of 16
30 June 2009
Wireless Application Service Provider Association
Report of the Adjudicator
30.1.
Complaint #5564
It is noted that the offending advert has been withdrawn and the member is
ordered to review its advertising to ensure that it complies with section 11 of the Code
and section 9 of the Advertising Rules.
30.2.
The suspended fine imposed under Complaint 4967 is hereby activated in
that the member has breached section 9 of version 2.3 of the Advertising Rules
during the period of suspension.
30.3.
The member is fined the sum of R75 000 in respect of the breach of section
4.1.1 of the Code of Conduct read with section 9.2 of the Advertising Rules;
30.4.
The member is fined the sum of R250 000 in respect of the breach of section
11.1.1 of the Code of Conduct read with section 9.3.15 of the Advertising Rules;
30.5.
The member is fined the sum of R10 000 in respect of the breach of section
8.1.3 of the Code of Conduct;
30.6.
The member is fined the sum of R50 000 in respect of the breach of section
11.2.2 of the Code of Conduct;
30.7.
All fines are payable to the WASPA Secretariat within twenty days of date of
notification of this Adjudication.
Page 16 of 16
30 June 2009