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‘Secret sales codes’ firm fined £200k and banned for five years
A firm that charged customers for ‘secret sales codes’ without consent has been fined £200,000 and banned from the UK market for five years.
German-based Mobtech promised to send “the latest voucher codes, from the hottest retailers” to subscribers via text message.
However, subscribers only received one text message with a voucher offer per month, at a cost of £4.50.
Regulator Phone-paid Services Authority (PSA) received 92 complaints about the service, from people who said they hadn’t consented to be charged.
Jo Prowse, chief executive of the PSA, said: “Mobtech UG totally disregarded our regulations when it charged consumers without consent for a misleading service that they didn’t need or want.
“We welcome the Tribunal’s decision to issue a substantial fine and a ban from the market, which reflect the high level of consumer harm that this company caused.”
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The PSA also ordered Mobtech to refund any consumers who claim a refund.