Ofcom Moves to Tighten Regulation of Participation TV

Following the UK's recent participation TV scandal, that country's
broadcast regulator, Ofcom, has proposed new rules to tighten
regulation of TV and radio programs that rely heavily on premium-rate
telephone services (PRS). The body says that its proposed changes to
the UK's Broadcasting Code will "ensure that programs that invite
viewers and listeners to interact or participate are not vehicles for
promoting commercial, revenue-generating services," and will also
"ensure that viewers are adequately protected and that advertising is
kept separate from editorial content, as required under European
legislation."

The new rules state that when PRS is used in a program for audience
participation:

• it must not be given undue prominence within the program;
• the program must consist primarily of content other than the
  promotion of the PRS;
• the primary purpose of the program must be editorial, and any
  commercial activity associated with the PRS, such as generation of call
  revenues, must be secondary to that purpose;
• broadcasters may only charge viewers via PRS call charges, and not
  by other means, such as credit card or direct debit.

Ofcom states that the new Broadcasting Code rules take into account an
October, 2007 ruling by the European Court of Justice that a quiz TV
show could be classified as teleshopping (defined as "a particular form
of advertising involving the broadcast of direct offers to the public with
a view to the supply of goods or services in return for payment").
According to the regulatory body, participation TV services will have
to either 1) ensure that they comply with the new rules in order to
remain classified as editorial services (Ofcom points out that "quiz,
psychic and adult chat TV as currently broadcast will need to change
significantly in order to comply"); or 2) be reclassifed as
teleshopping--which will make them subject to advertising minutage
rules and the Broadcast Committee of Advertising Practice (BCAP)
Advertising Standards Code which is enforced by the UK's Advertising
Standards Authority. However, Ofcom points out, "services which fall
into a prohibited advertising category, such as adult chat on
unencrypted channels and psychic practices, cannot be broadcast as
teleshopping"; which, in turn, means that "unless such services change
to comply with the new Broadcasting Code rules, they can no longer be
broadcast." The deadline for responses to Ofcom's new rules is May
22nd. More information on the body's regulatory proposals can be
found on its Web site.

Ofcom's proposed Broadcasting Code rules for participation TV are
part of a two-pronged attempt to regulate the genre. The other prong,
which was announced earlier this year, imposes new, mandatory license
conditions on television broadcasters. According to the regulatory
body, the new license conditions will "ensure that audiences, including
those who choose to participate in programs, are adequately protected
and will help restore trust in participation TV by allowing early
detection of compliance issues." The new conditions state that:

• Where broadcasters invite viewers to participate in programs, they are
  directly responsible for the handling of all communications--whether
  by phone, email or regular mail--from viewers;
• Broadcasters must obtain independent, third-party verification of all
  systems used in PRS voting and competitions. In order to enforce this,
  Ofcom plans to undertake an initial 12- to 18-month program of
  unannounced spot-checks to ensure that broadcasters are complying
  with this requirement.

Ofcom says that it expects all broadcasters using PRS voting and
competitions to have third-party verification arrangements in place by
the end of June. "Viewers must be confident that they will be treated
fairly and consistently when interacting with television programs,"
Ofcom chief executive, Ed Richards, said in a prepared statement.
"These measures will ensure that broadcasters are directly accountable
and give greater protection for all. Ofcom will not hesitate to take firm
action with broadcasters who step out of line and mislead people." As
an additional element of the UK's regulatory push against participation
TV, PhonepayPlus, the agency that carries out day-to-day regulation of
the PRS market on Ofcom's behalf, now requires that service providers
looking to offer PRS to broadcasters must first seek its permission, and
must meet a number of conditions, including ensuring that lines are
closed promptly.