Ofcom less than impressed with GCap as fines radio owner £1m plus
Posted by scott on June 26th, 2008It’s has all been about the TV companies being hit for not playing fair with their premium rate phone in competitions up until now, but today Ofcom dished out a £1million plus fine to Britain’s largest radio group GCap. It fined 30 local radio stations, which form part of GCap Media’s One Network, a total of £1,110,000 (£37,000 each) for the unfair conduct in a listener competition; Secret Sound
GCap ran a competition where a sound was played and listeners could call or text in what they thought the sound was. The ’rounds’ ran each hour for six hours a day and the terms and conditions said an answer would be chosen at random each hour and broadcast. If that answer was incorrect all answers from that round were discarded and a new round began with prize money increased by £100.
What Ofcom’s investigation discovered was that wrong answers were deliberately read out to extend the length of the quiz and this practice has been agreed in advance by a programme Director. Ofcom found the practice would increase GCap’s revenue - even if that was not the purpose of the practice - by offering a higher ‘prize’ to encourage more people to enter the competition.
Ofcom also found that there was a lack of supervision and oversight by senior management and even when they became aware of the situation and investigated the situation (’ not as thorough or as extensive as it had claimed’) then failed to produced a written report. It then issued a press release claiming the incident was “an isolated incident†and a “system errorâ€, something Ofcom describes as fundamentally misleading and inaccurate (a lie in normal person language) and ‘an inept attempt at “news management†on GCap’s part.’
The exact wording of that press release states:
“The breach that occurred was an isolated incident and as soon as the system error was discovered, management took swift and decisive action to tighten up GCap’s procedures to prevent any similar breaches occurring in the future.”
Ofcom expressed further serious concern that GCap’s Board had authorised the wording of this statement, and its publication on GCap’s corporate website, and that this and the offer of a refund only appeared here, and was not reposted on the websites of the individual stations involved or broadcast on any of those stations.
Ofcom still isn’t finished. Co-operation with the investigation? Ofcom wasn’t overly impressed with that either claiming GCap had ‘effectively hindered’ the investigation by providing ambiguous information to it and PhoneplayPlus, in particular showing an unwillingness to disclose for who was responsible within GCap and what their seniority was. This lack of frankness by GCap, Ofcom concludes, is the reason the fine is not less than it is.
One of the interesting aspects of this case was that GCap were shopped by someone within their ranks who told PhonepayPlus (ICSTIS as was) about what was going on, who then fined GCap £17,500 back in August last year.


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