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Clampdown on cold call companies unveiled by government Clampdown on cold call companies unveiled by government
(35 minutes later)
Imposing fines of up to £500,000 on the companies behind cold calls and nuisance text messages is to become easier under changes to the law being made by the government.Imposing fines of up to £500,000 on the companies behind cold calls and nuisance text messages is to become easier under changes to the law being made by the government.
The move follows tens of thousands of complaints about cold calling.The move follows tens of thousands of complaints about cold calling.
Currently, firms can only be punished if the Information Commissioner can prove a call caused "substantial damage or substantial distress".Currently, firms can only be punished if the Information Commissioner can prove a call caused "substantial damage or substantial distress".
But from April 6, that legal requirement is to be removed.But from April 6, that legal requirement is to be removed.
More than 175,000 complaints were made to the Information Commissioner's Office (ICO) last year about nuisance calls and text messages.More than 175,000 complaints were made to the Information Commissioner's Office (ICO) last year about nuisance calls and text messages.
'Spammers' licence''Spammers' licence'
The government says the number of complaints has risen in the past decade and the issue is particularly acute for the elderly and housebound as such calls can cause distress and anxiety.The government says the number of complaints has risen in the past decade and the issue is particularly acute for the elderly and housebound as such calls can cause distress and anxiety.
In a speech earlier this month, Information Commissioner Christopher Graham described the current law as "a licence for spammers and scammers" and appealed for more powers.In a speech earlier this month, Information Commissioner Christopher Graham described the current law as "a licence for spammers and scammers" and appealed for more powers.
The ICO can take action against companies who flout rules on direct marketing, and says it has issued penalties totalling £815,000 to nine firms since January 2012.The ICO can take action against companies who flout rules on direct marketing, and says it has issued penalties totalling £815,000 to nine firms since January 2012.
But it has been powerless to target other firms behind a large number of unsolicited calls or texts.But it has been powerless to target other firms behind a large number of unsolicited calls or texts.
It had tried to argue that companies which make a large number of calls could breach the regulations because of the "cumulative effect" of their actions.It had tried to argue that companies which make a large number of calls could breach the regulations because of the "cumulative effect" of their actions.
But a tribunal upheld an appeal against a £300,000 fine imposed on Manchester-based Tetrus Telecoms after ruling its high volume of text messages about PPI and accident claims did not meet the legal threshold of causing "substantial damage or substantial distress".But a tribunal upheld an appeal against a £300,000 fine imposed on Manchester-based Tetrus Telecoms after ruling its high volume of text messages about PPI and accident claims did not meet the legal threshold of causing "substantial damage or substantial distress".
Now, following a six-week public consultation, that threshold is to be removed according to digital economy minister Ed Vaizey.Now, following a six-week public consultation, that threshold is to be removed according to digital economy minister Ed Vaizey.
He said: "For far too long companies have bombarded people with unwanted marketing calls and texts, and escaped punishment because they did not cause enough harm. He told BBC Breakfast: "At the moment if the Information Commissioner goes after a company, he's got to show the company has caused you - the consumer at home - serious distress, serious harm.
"This change will make it easier for the Information Commissioner's Office to take action against offenders and send a clear message to others that harassing consumers with nuisance calls or texts is just not on." "It's a very high test to pass which is why there have only been nine prosecutions, which is why we want to lower that test."
He said it was "important to recognise" the UK has a "legitimate direct marketing industry.. where businesses calling consumer can sometimes bring some benefit".
"We want to go after the cowboys. Frankly the Information commissioner knows who a lot of these companies are but it's very, very difficult to pass that threshold, now it will be a lot easier," he added.
It will now be up to the ICO to assess when a serious contravention has taken place.It will now be up to the ICO to assess when a serious contravention has taken place.
'Everyday menace''Everyday menace'
The Department of Culture, Media and Sport (DCMS) said it was "committed" to dealing with the problem of nuisance calls, and that it was looking to introduce mandatory caller line identification so that all marketing callers would have to display their telephone numbers.The Department of Culture, Media and Sport (DCMS) said it was "committed" to dealing with the problem of nuisance calls, and that it was looking to introduce mandatory caller line identification so that all marketing callers would have to display their telephone numbers.
It also confirmed that it will look at introducing measures to hold board level executives responsible for nuisance calls and texts.It also confirmed that it will look at introducing measures to hold board level executives responsible for nuisance calls and texts.
This follows a report last December from a task force looking at the problem, which called for a review of the rules in order to act as a stronger deterrent to rogue companies.This follows a report last December from a task force looking at the problem, which called for a review of the rules in order to act as a stronger deterrent to rogue companies.
The executive director of the consumer organisation Which?", Richard Lloyd, who chaired the task force, welcomed the announcement, saying the government was "making good on its promise" to crack down on nuisance callers.The executive director of the consumer organisation Which?", Richard Lloyd, who chaired the task force, welcomed the announcement, saying the government was "making good on its promise" to crack down on nuisance callers.
He added: "These calls are an everyday menace blighting the lives of millions. We want the regulator to send a clear message by using their new powers to full effect without delay."He added: "These calls are an everyday menace blighting the lives of millions. We want the regulator to send a clear message by using their new powers to full effect without delay."
But the Fair Telecoms Campaign, which contributed to the consultation, said the announcement was only a "tiny step in the right direction".But the Fair Telecoms Campaign, which contributed to the consultation, said the announcement was only a "tiny step in the right direction".
David Hickson, from the campaign, said "using the limited capacities of the ICO and [telecoms regulator] Ofcom can never succeed now that the problem has been allowed to grow to its present scale".David Hickson, from the campaign, said "using the limited capacities of the ICO and [telecoms regulator] Ofcom can never succeed now that the problem has been allowed to grow to its present scale".
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