PhonepayPlus, the UK regulator of premium rate phone services, has warned that it had started taking action against malicious apps that charged consumers without seeking their consent.

The regulator stressed that mobile phone apps could be subject to stronger control as they could pose hidden threat to consumers.

PhonepayPlus chief executive Paul Whiteing said that developers behind rogue apps could harm the growing digital and creative economies of the country.

Speaking on the issue, Whiteing warned, "We will not hesitate to use our robust sanctioning powers to drive out rogue providers who could damage a vital part of the UK's growing & innovative digital & creative economies."

The regulator's new recommendations include new guidelines around how app developers describe what is offered for free, what costs extra, and how consumers consent to be charged.

The regulator could also impose striker guidelines around the use of virtual currency, passwords and how malware is identified.
Case Updates
The Executive received 78 complaints in relation to a subscription-based video clip service that operated on shortcode 60042 and other premium rate shortcodes called ‘BuboMe Premium Videos’. Complainants stated to have first come into contact with the service, though inadvertently, by way of a free battery saver application called ‘Battery Booster UK’ found in the Android Market.

Complainants stated that, having downloaded the ‘Battery Booster UK’ application, they were apparently subscribed into the service. It appeared that the application was sending a keyword to the service and that subsequent service text messages were sent; however, several complainants stated not to have received these service text messages.

The Executive was concerned of reports that the application had been free to download and had contained wording in the terms and conditions that stated that the application would have access to the text messages functions of the mobile handset, including the ability to receive, send and edit text messages. These terms and conditions had made no reference to the ‘BuboMe Premium Videos’ subscription service.

According to the Service Provider and Information Provider, the operation of the application and resulting consumer harm had been caused by the actions of an affiliate of the Information Provider.