Monday, 21 July 2008

EU Takes Some Serious Action Against Bogus Ringtone Sellers

The European Union's consumer chief, this week, announced a crackdown on websites offering mobile phone services such as ring tones ring-tones and wallpapers...

The European Union's consumer chief, this week, announced a crackdown on websites offering mobile phone services such as ring tones ring-tones and wallpapers after a probe found most were ripping people off, notably teenagers.

An E.U. wide crackdown on online sellers of mobile-phone ring tones found that 80 percent of 558 Web sites examined across EU's 27 member states are suspicious and require further investigation for suspected breaches of EU consumer rules, said European Commissioner for consumer issues Meglana Kuneva.

"Far too many people are falling victim to costly surprises from mysterious charges, fees and ringtone subscriptions they learn about for the first time when they see their mobile-phone bill," Kuneva said during a news conference. "There will be Europe-wide enforcement action to track down each of these traders."

There are some notable names on the list: For instance, several reported localized versions of Jamba as being in violation of EU laws. Vodafone in Iceland was also included. VeriSign, Aspiro and Wiking Mobile are among others in the list. In Europe, ring tones are big business, making up 29 percent of mobile content revenues in the region last year. Altogether, 2007 sales are estimated to be 691 million euros.

Children and young adults are the main purchasers of mobile-phone ring tones. Kuneva described them as the most vulnerable consumers and called for a campaign to educate them about the scams and tricks some unscrupulous traders use.

As a remedy to take control of this, EU commission said that companies would be contacted by national authorities and asked to clarify or correct the identified problems. Failure to do so will result in legal action leading to fines or even closure of their websites.

In cross-border cases, national authorities will work with colleagues from other EU states and report on the progress in the first half of 2009.