http://uk.news.yahoo.com/050629/325/fm9mq.html
Probe launched into "Crazy Frog" sales tactics
LONDON (Reuters) - The regulator that oversees premium-rate phone services is launching a probe into the wildly popular "Crazy Frog" mobile phone ringtone, after complaints that it dupes children into signing up for an expensive subscription plan.
Crazy Frog, which made history last month as the first ringtone to reach the top of the pop charts, is part of a package of ringtones created by mobile content company Jamster, and sold through a mobile service provider called MBlox.
The regulator, known as Icstis, said it has received more than 100 complaints that the Crazy Frog sales terms are misleading and difficult to understand.
Consumers who may think they are buying a single ringtone are in fact signing up for a subscription plan. Each week, they receive a new text message for which they are charged 3 pounds, enabling them to download another ringtone.
Crazy Frog has been promoted with a heavy TV advertising campaign that displays the terms of sale at the bottom of the screen.
A voiceover states: "Get the Crazy Frog ringtone and more as part of the Jamster clubs."
Jamster is already facing a lawsuit in California from a woman who has accused the company of fraud and false advertising.
"If it's a subscription service, that has to be made perfectly clear," said a spokesman for Icstis. "There's a concern that the use of the word 'club' doesn't make clear that you're subscribing to a subscription service."
The regulator has the power to levy fines of up to 100,000 pounds and shut down services that do not comply with its guidelines. Crazy Frog may also face additional restrictions if it is found to be targeting children under the age of 16.
"Because it is a cartoon character, to us that seems arguably targeted at children," the Icstis spokesman said.
Jamster, a company that has been at the centre of the rapidly expanding global ringtone market, is owned by VeriSign Inc.
A spokesman for Jamster said it was cooperating with Icstis "to ensure that our advertising and product offering remain as transparent as they can be."
He noted that consumers joining the Jamster "club" receive a free text confirmation message, with the cost, terms, and details on how to stop the service.
MBlox said in a statement that "there is no suggestion that in its own activities mBlox has breached any operator or Icstis guidelines ... mBlox has no direct control over any clients' marketing or commercial activities."
I hope for God's sake that companies like Jamster get absolutely ripped. It is evil people like these who make our lives hell.
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