£600,000 fine and a two-year prohibition from the market to Veoo Ltd, a payment platform provider enabling other companies to bill consumers’ phone bills
- £600,000 fine and ban from market for Veoo – a Level 1 provider that facilitates phone payment.
- Veoo knowingly breached its due diligence, risk assessment and control requirements and provided false or misleading information to the Phone-paid Services Authority (PSA)
- Case advances consumer interest and has major implications for the phone-paid services market
The PSA has issued a fine of £600,000 and a two-year prohibition from the market to Veoo Ltd.
The company will also need to submit to a formal compliance audit should it wish to return to the market once this ban ends.
The case was adjudicated on by a PSA Tribunal, which conducted an oral hearing in which representations were made by both sides.
After deliberation, the PSA Tribunal found that Veoo had committed eight serious breaches of the required standards in due diligence, risk assessment and control to ensure those providers of phone-paid services it contracted with complied with the PSA Code of Practice. The Tribunal found that five of the eight breaches had been committed knowingly.
The PSA has recently taken further action to protect consumers from harm, including the introduction of new regulatory requirements for phone-paid services charged on a subscription basis, and work with the mobile networks and independent security experts to ensure that platform security across the market remains high. These measures, alongside enforcement activity, are designed raise standards and advance the consumer interests within the market.