Ofcom published a third consultation on Participation TV: rules on the promotion of premium rate services on 3 November 2009. This document is Ofcom's regulatory statement on this consultation.
The consultation confirmed (following previous consultations) Ofcom's decision to amend the Broadcasting Code to clarify that services designed primarily to promote Premium Rate Service (PRS) lines would not be considered as editorial in nature (and regulated under the Broadcasting Code) but would be treated as advertising. Advertising is regulated under the BCAP Broadcast Advertising Standards Code (the Advertising Code). The consultation set out the new rules and associated guidance under the Broadcasting Code.
The changes were necessary to ensure that, as required by the relevant European legislation, advertising is readily recognisable and distinguishable from editorial content. We consider that the changes to the Broadcasting Code benefit viewers and consumers, by maintaining the distinction between editorial and advertising and offering enhanced consumer protection for the latter under the Advertising Code, and benefits broadcasters by increased clarity, consistency and therefore fair competition in the acceptable use and promotion of PRS.
In reaching its conclusions, Ofcom recognised that, when the new Broadcasting Code rules are brought into effect, those Participation TV (PTV) services which were previously regulated under the Broadcasting Code may now fall to be regulated under the Advertising Code.
Our impact assessment suggested that relatively few services will be significantly affected by this change and need to modify their services. However, two categories of service Adult Chat PTV and Psychic PTV - could not continue to operate as they do currently if classified as advertising since the promotion of some categories of premium rate services (PRS) featured on these services is heavily restricted under the Advertising Code. In particular, under the current Advertising Code rules, services predicated on the promotion of live psychic PRS (Psychic PTV) or PRS of a sexual nature (Adult Chat PTV) on a free to air basis would not be permitted.
However, research commissioned by Ofcom on audience views of Participation TV services showed that viewers are generally tolerant of such services continuing to be broadcast, subject to certain safeguards to ensure that services are appropriately labelled and positioned so that viewers do not chance upon them unintentionally. Ofcom therefore considered changes to the Advertising Code to ensure that the regulation of those services remains proportionate to the aim of protecting the viewing public from harm and/or offence.
The consultation set out four options for the future regulation of Adult Chat PTV services. These options were:
- Retain the current rules, allowing promotion of PRS of a sexual nature on encrypted channels only;
- Allow promotion of PRS of a sexual nature on open access channels in spot advertising and teleshopping, subject to scheduling restrictions;
- Allow promotion of PRS of a sexual nature in spot adverts subject to scheduling restrictions, but with teleshopping promotion only allowed on encrypted channels;
- Allow promotion of PRS of a sexual nature on dedicated teleshopping channels subject to scheduling restrictions and labelling rules, but spot advertising remains only on encrypted channels.
The consultation also set out four options for the future regulation of Psychic PTV services. These options were:
- Retain the current rules, prohibiting promotion of psychic and occult practices (with the current exceptions for general pre-recorded PRS);
- Extend the exceptions to allow promotion of live personal psychic services, subject to restrictions on the specific type of practice;
- Allow promotion of these specific live personal psychic services in spot adverts only;
- Allow promotion of these specific live personal psychic services only in dedicated teleshopping channels, subject to labelling rules.
We stated that, in each case, Option 4 was Ofcom's preferred option for regulation of promotion of these services. We proposed amendments to the relevant rules in the Advertising Code, to be introduced when the changes to the Broadcasting Code come into effect.
We invited responses to the consultation, and particularly to Ofcom's proposal to amend the Advertising Code rules concerning the promotion of telecommunications based sexual entertainment services or featuring live psychic services. The responses are summarised in Section 2 of this document.