MEPs set to ban 'Phone Prize Scams'

6.00.00pm GMT Wed 23rd Feb 2005

The European Parliament is expected to vote tomorrow (Thursday, February 24) to end the telephone prize scams currently plaguing Britain's households. The banning of scam calls is part of a new package of EU consumer protection measures. Once the legislation is approved the UK government will put the rules into British law and decide how best to enforce them.

The move by MEPs reflects the recent explosion in the number of people receiving unwanted automated phone calls telling them they have won a prize if they return the call. When the number is dialled back the caller has to pay for a premium phone call, usually lasting several minutes, and which can cost up to a hundred pounds. Only last month the Office of Fair Trading said that Britons lose out to unfair marketing tactics to the tune of £1 billion each year.

Many of these scams are based in another country to escape the attention of the UK authorities. Up until now, the phone scam has fallen outside UK and EU consumer laws, but the new rules will make clear that such practices are illegal. Liberal Democrat MEP Andrew Duff, has supported moves to include telephone prize scams in the new legislation, says that the scammers' days are numbered.

"These scams are a real headache for many of my constituents. Not only are the calls an unwanted nuisance, they can also end up costing a lot of money for vulnerable and unsuspecting people." he said.

"The law will apply not only in the UK, but throughout the EU, so scammers will not be able to hide away in other European countries. This is good news for British consumers."

ENDS

Note to editors:

The European Parliament will vote tomorrow on the Council of Ministers' Common Position on the Unfair Commercial Practices Directive. The Council has signalled that if the European Parliament accepts the changes made by the Internal Market Committee the Directive can be adopted.

The UK government must then transpose the Directive into national law. It will decide what sanctions it should bring to bear on those who operate such scams.