EU clamps down on mobile ringtone scams 

The enquiry involved 558 websites in all 27 EU member states (plus Norway and Iceland) and was conducted between 2 and 6 June. 80% of the checked sites are a cause for concern and are now under further investigation by national authorities, the Commission reported.

Among the most common irregularities is the lack of information concerning what's actually on sale and at what price. Consequently, consumers are frequently charged much more than expected to download a ringtone. What's more, a single download often in fact comes with an automatic and paying subscription to services not requested. 

The Commission notably stressed its irritation over the frequent use of the word 'free' to market products that eventually imply charges for the consumer. Its investigation also found that several websites hide relevant information on the services on offer or present them in a way that is difficult to read. "Be on guard! It's all about the small print," exhorted the EU Consumer Affairs Commissioner Meglena Kuneva. 

The Commission fears that the long awaited take-up of eCommerce in Europe could be further delayed by such practices (see our Links Dossier). Ringtone sales alone accounted for almost €700 million in Europe in 2007 (almost a third of the so-called mobile content market), with an expected growth of 18% in 2008, according to the EU executive's figures. The harm to the European Internal Market is therefore far from irrelevant. 

Moreover, such misleading practices hit young people particularly hard, and consequently their families. Half of the websites investigated are in fact explicitly targeting children, using cartoons or well-known TV characters. 80% of those specifically aimed at kids showed irregularities.

Now it is up to the competent national authorities to continue the investigation and eventually to impose changes, fines or the closure of the websites. "Endorsement is the most important thing. And if member states will not act, I will not hesitate to start infringement procedures," Commissioner Kuneva made clear during a press conference in Brussels yesterday (17 July).

She will raise this issue with the competent ministers at the next Competitiveness Council in autumn. Seven states (Finland, Sweden, Latvia, Romania, Greece, Norway and Iceland) are already publishing the names of the websites with irregularities - a measure warmly welcomed by the Commission.

In the meantime, it remains unclear how the potential restrictive measures would be applied to websites based outside the EU territory. "If the website is in the US we can cooperate. There is a very good cooperation with US authorities," underlined Kuneva. But for China there are more doubts. "At the moment we do not have legal grounds for the EU-China relationship on this issue," admitted Kuneva, although she said she is confident of progress.

The investigation was carried out on the basis of a new procedure, branded a 'sweep' by the Commission (see our Links Dossier). The practice was first applied last year, targetting airline ticket selling websites also accused of misleading consumers with techniques similar to those used for ringtones. The Commission claims that after the 'sweep', 50% of the irregular websites have been corrected (EurActiv 15/11/07).