Premium Rate Text Message Charging - £150+ Lotto by Text - **REFUNDED IN FULL**

[goodwill]

some background.

 

The company behind LottobyText was Marketing Craze Limited.

 

On 06 December 2012 they were fined by the Regulator (PhonepayPlus) £250,000 and ordered to refund all complainants.

 

PhonepayPlus don't allow links but here it is.

http://forums.moneysavingexpert.com/showpost.php?p=58055745&postcount=14

 

Marketing Craze recently changed their name to Bitstacker Limited.

 

On 2nd July PhonepayPlus launched an Emergency procedure against Bitstacker.

http://www.phonepayplus.org.uk/News-And-Events/News/2013/7/Emergency-procedures-initiated-2-July-2013.aspx

 

Emergency procedure investigation

2 July 2013

 

PhonepayPlus, the UK regulator for premium rate telephone services, has launched an Emergency procedure investigation under paragraph 4.5 of its Code of Practice (Twelfth Edition) (the Code), following internal monitoring conducted by PhonepayPlus. This monitoring evidenced affiliate marketing that appeared to utilise a form of malware known as ransomware to lock consumers’ internet browsers and force them to interact with online offers which directed them to the Level 2 provider, Bitstacker Limited’s “lottobytext” subscription service(s).

Bitstacker Limited has been identified as the Level 2 provider responsible for the service. A Tribunal will decide whether the service is in breach of the Code as soon as is reasonably possible after PhonepayPlus has received a response from the Level 2 provider to its Emergency procedure breach notice, which is to be sent to Bitstacker Limited in due course. The service has now been suspended pending conclusion of the investigation and a decision by the Tribunal.

In the meantime, other providers are reminded that enabling this service, or any other services that operate in a similar way, may result in breaches being raised against them.

 

Update to Emergency procedure investigation against Bitstacker Limited published on 2 July 2013

Update published 4 July 2013

 

Following the instigation of the Emergency procedure, Bitstacker Limited (Bitstacker) requested a review of the use of the procedure in accordance with paragraph 4.5.3(b) of the Code. The Tribunal considered Bitstacker’s written and oral submissions in relation to the grounds on which it asserted that the Emergency procedure should not have been used and, in the alternative, that access to the service shortcodes should no longer be prevented and all withheld monies released. During the course of informal representations Bitstacker withdrew its assertion that the Emergency procedure should not have been used and agreed that its use had been appropriate.

Having considered all the information before it including the particular nature of the service, the Tribunal decided that the Emergency procedure should continue pending completion of the normal Emergency procedure process, but concluded that in accordance with paragraph 4.5.3© that access to Bitstacker’s service shortcodes should be permitted, subject to the following conditions:

The Level 2 provider is to immediately cease all promotion of the service through online affiliate marketing of any form or description;

The Level 2 provider is to forthwith provide written confirmation to PhonepayPlus that it has ceased all promotion of the service through online affiliate marketing and provide an undertaking that it will not promote any part of the service using online affiliate marketing until such time as a determination has been made by a Tribunal on the substantive case;

Access to the service shortcodes may only resume once the Level 2 provider has provided evidence that its use of all online affiliate marketing has ceased, to the satisfaction of the PhonepayPlus Executive;

If PhonepayPlus reasonably suspects that the service is being promoted through online affiliate marketing prior to the Tribunal determination, PhonepayPlus may direct the Level 1 provider to immediately terminate access to all service shortcodes.

The Tribunal also decided, in accordance with paragraph 4.5.3© of the Code that the Level 1 provider should be directed to cease to retain all monies in excess of £250,000 held by it under PhonepayPlus’ direction. The Level 1 provider is to continue to retain the sum of £250,000 in accordance with PhonepayPlus’ direction.

 

You should make an official complaint to PhonepayPlus and contact Bitstacker again for a full refund (or something that approaches a full refund).