Communications Act 2003, section 121

Approval of code for premium rate services

Part 2 Networks, services and the radio spectrum

(1)If it appears to OFCOM—

(a)that a code has been made by any person for regulating the provision and contents of premium rate services, and the facilities made available in the provision of such services;

(b)that the code contains provision for regulating, to such extent (if any) as they think fit, the arrangements made by the providers of premium rate services for promoting and marketing those services; and

(c)that it would be appropriate for them to approve that code for the purposes of section 120,

they may approve that code for those purposes.

(2)OFCOM are not to approve a code for those purposes unless they are satisfied—

(a)that there is a person who, under the code, has the function of administering and enforcing it; and

(b)that that person is sufficiently independent of the providers of premium rate services;

(c)that adequate arrangements are in force for funding the activities of that person in relation to the code;

(d)that the provisions of the code are objectively justifiable in relation to the services to which it relates;

(e)that those provisions are not such as to discriminate unduly against particular persons or against a particular description of persons;

(f)that those provisions are proportionate to what they are intended to achieve; and

(g)that, in relation to what those provisions are intended to achieve, they are transparent.

(3) OFCOM are not for those purposes to approve so much of a code as imposes an obligation as respects a premium rate service on a person who is a provider of the service by virtue only of section 120(12) (“the relevant provider”) unless they are satisfied that the obligation—

(a)arises only if there is no one who is a provider of the service otherwise than by virtue of section 120(12) against whom it is practicable to take action;

(b)arises only after a notice identifying the service and setting out respects in which requirements of the code have been contravened in relation to it has been given to the relevant provider by the person responsible for enforcing the code; and

(c)is confined to an obligation to secure that electronic communications networks provided by the relevant provider are not used for making the service available to persons who are in the United Kingdom.

(4)The provision that may be contained in a code and approved under this section includes, in particular, provision about the pricing of premium rate services and provision for the enforcement of the code.

(5)The provision for the enforcement of a code that may be approved under this section includes—

(a)provision for the payment, to a person specified in the code, of a penalty not exceeding the maximum penalty for the time being specified in section 123(2);

[F480 (aa)provision that applies where there is or has been more than one contravention of the code or directions given in accordance with it by a person and which enables—

(i)a single penalty (which does not exceed that maximum penalty) to be imposed on the person in respect of all of those contraventions, or

(ii)separate penalties (each of which does not exceed that maximum penalty) to be imposed on the person in respect of each of those contraventions,

according to whether the person imposing the penalty determines that a single penalty or separate penalties are appropriate and proportionate to those contraventions;F480]

(b)provision requiring a provider of a premium rate service to secure that the provision of the service is suspended or otherwise ceases or is restricted in any respect;

(c)provision for the imposition on a person, in respect of a contravention of the code, of a temporary or permanent prohibition or restriction on his working in connection with the provision of premium rate services or, in the case of a body corporate, on its providing such services or on its carrying on other activities in connection with their provision.

(6)OFCOM may, at any time, for the purposes of section 120—

(a)approve modifications that have been made to an approved code; or

(b)withdraw their approval from an approved code.

(7)Where OFCOM give or withdraw an approval for the purposes of section 120, they must give notification of their approval or of its withdrawal.

(8)The notification must be published in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in OFCOM’s opinion, are likely to be affected by the approval or withdrawal.

Definitions used in section 121 10

OFCOM

“OFCOM” means the Office of Communications;

Defined in s.405(1) · see it in the full Act
premium rate service

“premium rate service” is to be construed in accordance with section 120(7);

Defined in s.151(1) · see it in the full Act
made available

(7B) Subsection (13) of section 264 (interpretation of “made available”) applies for the purposes of sub-paragraph (7) as it applies for the purposes of that section.

Defined in Sch.12 para.3(7B) · see it in the full Act
provider

“provider”, in relation to a premium rate service, is to be construed in accordance with section 120(9) to (12), and cognate expressions are to be construed accordingly;

Defined in s.151(1) · see it in the full Act
electronic communications network

(1) In this Act “electronic communications network” means—

(a)a transmission system for the conveyance, by the use of electrical, magnetic or electro-magnetic energy, of signals of any description; and

(b)such of the following as are used, by the person providing the system and in association with it, for the conveyance of the signals—

(i)apparatus comprised in the system;

(ii)apparatus used for the switching or routing of the signals; ...

(iii)software and stored data ; and

(iv)(except for the purposes of sections 125 to 127) other resources, including network elements which are not active.

Defined in s.32(1) · see it in the full Act

“electronic communications network” and “electronic communications service” have the meanings given by section 32;

Defined in s.405(1) · see it in the full Act
contravention

“contravention” includes a failure to comply, and cognate expressions are to be construed accordingly;

Defined in s.405(1) · see it in the full Act
the provision of premium rate services

(16) In this paragraph “Access Directive”, “electronic communications apparatus”, “the provision of premium rate services”, “SMP condition”, “SMP apparatus condition” and “Universal Service Directive” each has the same meaning as in Chapter 1 of Part 2 of this Act .

Defined in Sch.18 para.9(16) · see it in the full Act
body

“body” (without more) means any body or association of persons, whether corporate or unincorporate, including a firm;

Defined in s.405(1) · see it in the full Act
provide

“provide” and cognate expressions, in relation to an electronic communications network, electronic communications service or associated facilities, are to be construed in accordance with section 32(4);

Defined in s.405(1) · see it in the full Act
modification

“modification” includes omissions, alterations and additions, and cognate expressions are to be construed accordingly;

Defined in s.405(1) · see it in the full Act

Cases considering section 121 3

Ordanduu GmbH & Anor, R (On the Application Of) v Phonepayplus Ltd

[2015] EWHC 50 (Admin) · 16 January 2015

Section 121 empowered Ofcom to approve a code regulating premium-rate services, including promotion and marketing. It supplied the domestic statutory context for the Code and its proportionality requirement (see paras [2]-[3]; [15]; [62]; [70]). Section 121(2) requires provisions of an approved code to be objectively justified, non-discriminatory, transparent and proportionate. The Defendant relied on this statutory framework, but the court’s decision concerned the unlawful application of the Code and the Directive (see paras [15]; [62]; [70]).

Phonepayplus Ltd v Ashraf & Anor

[2014] EWHC 4303 (Ch) · 19 December 2014

Used to establish OFCOM’s approval of the code and the statutory basis for code enforcement provisions. (see paras [3]; [28]) Used to confirm that an approved code could provide for payment of a penalty to a specified person, supporting payment of fines to Phonepayplus. (see paras [4]; [28])

The Independent Committee for the Supervision of Standards of Telephone Information Services v Andronikou & Ors

[2007] EWHC 2307 (Admin) · 19 September 2007Limits

Interprets section 121 as requiring an approved code to provide for administration and enforcement and as supporting the existence of an enforcement authority with effective enforcement powers. (see paras [23]-[24], [32]-[34]) Confirms that statutory limits applied to obligations imposed on certain providers, while recognising that such limits did not displace the general enforcement role considered in the case. (see para [33]) Confirms that the enforcement provisions which an approved code may contain are not exhaustive. The identification of penalties in section 121(5) did not exclude other payment arrangements authorised by the code. (see paras [27]-[28]) Interprets the reference to penalties payable under an approved code as imposing a limit on penalties, but not as excluding code provisions requiring other types of payment. (see paras [27]-[28])

What each judgment says about section 121 is in the case-law panel in the full Act.

Explanatory note

296.This section enables OFCOM, where appropriate, to approve codes regulating the provision, content, promotion and marketing of premium rate services made by any person. OFCOM may not approve a code unless they are satisfied that the criteria listed in subsection (2) are met. These include the existence of a person whose function is to administer and enforce the code; adequate funding for the activities of that person; objective justification for the provisions in the code; provisions which do not unduly discriminate and are proportionate and transparent. Subsection (3) forbids OFCOM approving a code which places obligations on a communications provider falling within subsection 120(12), unless they are satisfied that the obligations only arise where the provider concerned is the only person against whom it is practicable to take regulatory action and only after notice has been given by the code enforcer identifying the premium rate service and the manner in which it is alleged to have breached the code, and the only obligation imposed is to secure that the network does not deliver the premium rate service to persons in the UK. OFCOM may (in accordance with subsection (6)) approve modifications made to an approved code or withdraw their approval of a code at any time.

All the explanatory notes for the Act

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F480S. 121(5)(aa) inserted (1.10.2015) by Consumer Rights Act 2015 (c. 15), ss. 80(2), 100(5); S.I. 2015/1630, art. 3(e) (with art. 7)

Modifications

  1. C28Ss. 120-124 modified (31.12.2020) by The Communications Act (e-Commerce) (EU Exit) Regulations 2020 (S.I. 2020/1420), regs. 1, 2

Commencement

  1. I218S. 121 in force at 29.12.2003 by S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)