MEPs ban phone prize scams

12.00.00am UTC (GMT +0000) Wed 23rd Feb 2005

A vote by Euro-MPs to end the telephone prize scam plague currently plaguing Britain's households comes in the wake of a an Office of Fair Trading estimate that Britons lose out to unfair marketing ploys to the tune of £1 billion a year.

The banning of scam calls is part of a new package of EU consumer protection measures. The UK government will put the rules into British law. London Liberal Democrat MEP Baroness Sarah Ludford said:

"I'm delighted 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."

"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."

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 £100. 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.

Sarah Ludford also welcomed the launch of the Liberal Democrat campaign to stop illegal nuisance calls from Labour and Conservatives. Households registered with the Telephone Preference Service (TPS) are being telephoned by both Labour and Tory telephone canvassers, on the questionable basis that they are conducting "polling" rather than "marketing". Both parties could end up with legal bills running into many hundred thousand pounds if they continue to behave inappropriately and illegally.

The Liberal Democrats have set up a new website www.stopnuisancecalls.com to encourage voters to register formal complaints when they receive such nuisance calls. Sarah Ludford said:

"Members of the public register with the TPS because they don't want to be called at home. It is scandalous that Conservatives and Labour are improperly pestering voters by telephoning them against their will. The Liberal Democrats are the only major party to respect their wishes."