THE EUROPEAN Commission is threatening to close down almost 20 Irish websites offering mobile phone ringtones and wallpapers - background screen images - over suspected breaches of consumer protection rules.
Some of the sites are accused of involvement in a scam, aimed particularly at children and other young people, in which consumers are lured into long-term contracts when thinking they are downloading a ringtone or wallpaper for their mobile phone for a fixed sum.
Of the 18 Irish websites checked as part of an EU-wide sweep, 17 were found to need further action and 14 were considered to be potential cases for action under EU consumer protection legislation.
Among the problems identified were the provision of unclear or incomplete price information, and a lack of awareness by customers that they were signing up to a subscription. In addition, many websites failed to provide the required contact information about the trader, or key information was hidden in very small print or was difficult to find on a website.
Overall, more than 80 per cent of websites examined across Europe were suspected of being in breach, prompting EU consumer affairs commissioner Meglena Kuneva to promise enforcement action across the Union to clamp down on scams. More than 500 websites were surveyed in 29 countries in Europe as part of the action, but the commission has decided not to name offenders at this stage.
The sweep was carried out in response to large numbers of complaints by consumers in Ireland and other EU states, many of them parents of young people who had been duped by websites offering websites and wallpapers.
Ms Kuneva said: "Far too many people are falling victim to costly surprises from mysterious charges, fees and ringtone subscriptions they learn about for the first time when they see their mobile phone bill."
She warned teenagers and children to guard against being ripped off by reading the small print of offers.
More than 495 million mobile phones are owned by Europeans, and last year ringtones alone were estimated to make up 29 per cent of the overall "mobile content" market in Europe. The value of European ringtone sales in 2007 was an estimated €691 million.
The survey found that almost 50 per cent of the sites checked had some irregularity related to the information about prices, and many left out charges and fees that later appeared on invoices via customers' phone bills.
Prices often left out taxes, or failed to mention the duration of a subscription - or even the word "subscription" at all.Over 60 per cent of websites checked were deemed to be "misleading", either hiding key information in the small print or advertising as "free" services which carry a charge or trigger a contractual agreement.
In Ireland, the commission has asked the National Consumer Agency to report back early next year on their progress in tackling the problem.
Speaking on the issue in Brussels, Ms Kuneva said: "We need to get a clear message out particularly to teenagers and children - be on your guard."
Ringtone rip-off: one teenager's tale
Sam, a Dublin teenager quoted in the commission's report, says his involvement with one of these websites started when he ordered a €1 ringtone from a website linked to a networking site. "Then I started getting loads of weird text messages . . . every time I got one, I lost €2 credit. When I finally got to the bottom of it, the company insisted I'd signed up for a long-term subscription."
Sam said this wasn't stated anywhere on the website, yet the company refused to refund his money. "All my friends have been burned the same way."
691m:The estimated value of European ringtone sales in 2007