OFT accepts undertakings from Micro Bill Systems Ltd

[Andy M]

Latest press release, printed in its entirety:

London, 27 March /PRNewswire-GNN/ --

OFFICE OF FAIR TRADING News Release (40/09) issued by The Government News Network on 27 March 2008

Micro Bill Systems Ltd and directors Ashley Bateup and Mark Webb have given undertakings to the OFT following numerous complaints about the appearance of 'pop-up' notices demanding payment for membership of adult content web sites on consumers' computers.

The company supplies subscription-based access to web site content that enables consumers to sign up without providing personal or payment card details. By signing up, consumers agree to download software onto their computer that produces 'pop-ups' if the consumer does not cancel their membership within the first three days. The 'pop-ups' cover a substantial area of the computer screen and are often locked open, preventing the computer user from using the computer for any other purpose. The number and frequency of the 'pop-ups' increases over time, and to stop them consumers have to pay or contact the company. Many consumers are unaware that they have agreed to the software download onto their computers.

Micro Bill Systems co-operated with OFT requests to review the clarity of the sign up process consumers go through to access to its web site content, the fairness of its terms and conditions of use, and its automated billing process. As a result, Micro Billing has undertaken not to:

• cause more than twenty 'pop-ups' notifying users of liability for payment to appear on computers that have been used to access its web sites,
• cause more than one 'pop-up' to appear on computers that have been used to access its web sites in any 24 hour period,
• cause the appearance on computers used to access its web site of more than ten 'pop-ups' that are locked open,
• cause those 'pop-ups that are locked open to remain open for more than 60 seconds,
• cause any 'pop-ups' to appear on computers that have been used to sign up to access MBS web sites beyond the expiry of six weeks after payment has become due,
• fail to provide information about how consumers can have the 'pop-up' generating software uninstalled at any time,
• fail to make it clear in the sign-up process that the consumer is entering into a contract, and
• fail to make it clear in the sign-up process that 'pop-up' bills will appear on consumers' computers when payment becomes due or is outstanding.

The company has also undertaken that it will not rely on unfair terms in its contracts with consumers.

If Micro Bill Systems Ltd, Mr Bateup or Mr Webb breach the undertakings, the OFT could seek a court injunction against them.

Mike Haley, OFT Head of Consumer Protection, said, "These undertakings are the result of detailed negotiations between OFT and Micro Bill Systems Ltd. We believe that they achieve the right balance between protecting consumer interests without stifling innovation in the 'on-line' market place."

NOTES

1. Undertakings were also given to the OFT by Platte International Limited, which the OFT understands will be taking over Micro Bill Systems Ltd' operations.

2. Part 8 of the Enterprise Act 2002 improves consumer protection by giving enforcers such as the OFT strengthened powers to obtain court orders against traders that breach a range of consumer protection laws to harm the collective interests of consumers.

3. The 'pop-up' billing system used by Micro Bill Systems Ltd is supported by the company's terms and conditions of use.  OFT assessed these terms and conditions against the Unfair Terms in Consumer Contracts  Regulations 1999 (UTCCRs).

4. Under the UTCCRs, a term is unfair in a contract and on the consumer if, contrary to the requirement of 'good faith', it causes a significant imbalance in the rights and obligations under the contract, to the detriment of consumers.

5. Consumer protection laws do not prohibit the use of automated 'pop-ups'. The main issue considered by the OFT was the fairness of the process by which consumers were signed up to the contract and the effects of billing system and automated 'pop-ups'.

6. OFT is aware that a number of consumers have stated that the software generating the 'pop-ups' has been downloaded onto their computers when the computer has not been used to access an MBS web site.  OFT has no legal remit to deal with the issue of software being downloaded without consent. We are aware that many consumers have had their computer usage disrupted by MBS 'pop-ups' in circumstances where the use of the computer to access MBS web sites is confirmed. OFT has acted to protect the interests of consumers in these circumstances.

[ForumFriend]

Thanks for posting that, Andy.  Looks like the OFT are finally taking the problem seriously!  What a pity it has taken so long to get here.

And this does confirm our suspicion that Platte and MBS are one and the same.

[Public Relations - Platte]

With respect to previous comments and postings:

With regard to the issue of access by minors - The Age verification page
was part of the recommendations, made by the OFT.
We took the additional steps of content rating all the access pages, to
adult content, whether of a sexual nature or not.
No special software is required to detect this, any internet browser can
be set to block this type of page as it carries this rating.
Most anti virus companies also offer this as part of their standard
protection package.

We also follow the ICRA policies - http://www.fosi.org/icra/ and their
guidelines.

The issue of minors accessing unsuitable material is one which Platte
takes very seriously. Although we pro actively take steps to avoid
exposure, we feel it is also the responsibility of the parent to put in
place blocks, preventing children from accessing any unsuitable material
when using the home computer.

As standard, all browsers allow the user to block content of a certain
rating. Pages that contain bad language, violence, sexual content, etc
are detected by the browser and a password is required to continue. This
can be set up very easily.

For further information on how to do this we produced an FAQ explaining
the steps to take - please visit:-
http://www.plattemedia.com/links/contentrating

We have found from previous experience that minors have obtained card
details from their unknowing parents and used these details to access or
purchase goods, which compounds an already difficult problem.

We do not use card verification for the above reason and the fact that
one of the key features of our membership process is that the access
software can be downloaded by those that want to subscribe to the site
but do not want to expose them selves to possible credit card fraud or
identity/information theft by inputting credit card details online.
There is also the fact that there are so many bogus cards that it does
not provide a reliable source of verification anymore.

We feel that a block by local software which all parents should be
activating anyway as a matter of good practice is a very proven process
and, is a more reliable method as it is under the full control of the
parent.

We constantly review measures in place and where a minor has accessed a
site, we have clearly defined procedures to block the computer from
accessing any sites in the future.

With regard to the High Court Judge opinion:- We took this step to
ensure that the new systems complied with all the relevant aspects of
law. Unfortunately, we cannot disclose the full account of the opinion
as parts are commercially confidential, is extremely long and legal. We
did, however, provide a full copy of it to the OFT during our
discussions with them.
I will request a review and If it is possible to provide relevant
excerpts of the opinion, they will be posted here and on other forums.

Thank you for the points raised and we will endeavour to respond to
future postings as quickly as possible.

Platte Public Relations

[jonlewi5]

could you please explain this part please, im not quite sure what you mean.

We constantly review measures in place and where a minor has accessed a
site, we have clearly defined procedures to block the computer from
accessing any sites in the future.

Also, as much as i agree that it is also the parents responsibility to stop their children from viewing inapproriate content surely you should be implying some sort of PROPER age verification.
i am not just talking about young kids, i mean people 16-17 they too are too young to be entered into any sort of legal contract or whatever, but they also will have the knowledge to get around those procedures you sugggest parents take.

Also you say that you dont ask for credit card information to "protect" your customers

We do not use card verification for the above reason and the fact that
one of the key features of our membership process is that the access
software can be downloaded by those that want to subscribe to the site
but do not want to expose them selves to possible credit card fraud or
identity/information theft by inputting credit card details online.
There is also the fact that there are so many bogus cards that it does
not provide a reliable source of verification anymore.

well forgive me if im wrong, but isnt that the EXCAT thing you are doing when demanding money from people and locking down there computers??

[Public Relations - Platte]

With reference to the questions submitted by jonlewis5

The procedure for managing minor access relates to; 1 preventing user access and 2 managing the event, when identified to us.
Our new system is based on simillar principles of providing access to a product without a user having to supply any personally identifiable details (credit card)
It was the aim of our system to replicate as far as possible, traditional viewing methods. If you go to the cinema, you pay and watch the film, no one asks you your name, address and postcode before you view. Our systems were developed to offer people the same levels of anonymity.

We accept that no system is fool proof in so far as age verification but there is also the fact that people do not want or should have to, enter their identifiable information before considering a purchase.

We have an age verification page on the site as the OFT requested this.

We do think that there is as much a responsibility from the parent to protect their children from accessing certain content. Not just of a sexual nature but violence which is easier to obtain from other sites.

Because we content rate all age restricted pages, it is an extremely simple process to protect children from accessing them, through a standard browser. Something a 16/17 year old is not able to get around.

By following ICRA guidelines we feel we are also taking responsible steps to reduce access by minors.

When it is identified to us that a minor accessed an age restricted area, the computer is immediately blocked from returning to it. When confirmation is obtained that it was indeed a minor (copy of birth certificate) and not an excuse by a user (we have countless examples of people who claim a minor accessed a site and latterly admit it was indeed an adult). The account is cancelled.

When a user wants to pay the bill, credit and debit card are one of a number of payment options available, we do not retain credit card information, it is simply used to process the payment.

A user is also able to pay by postal order which again is totally anonymous.

We DO NOT lock down peoples computers, this is a misconception that has been spread through the forums, all bills can be closed.


Platte Publilc Relations

[jonlewi5]

Because we content rate all age restricted pages, it is an extremely simple process to protect children from accessing them, through a standard browser. Something a 16/17 year old is not able to get around.

Firstly i totally disagree their, i could gurentee there is a way around that.and could prove that and will.

When a user wants to pay the bill, credit and debit card are one of a number of payment options available, we do not retain credit card information, it is simply used to process the payment.

so whats the difference in doing it AFTER the bill and BEFORE the bill, in my opinion nearly all your bad media issues would just disappear by making sure that a "customer"  is who the say they are, and are willing too pay and this software hasnt been downloaded some other way.

and now i have another question,

In your T&C's you state you will use a users IP address to find out more about them,  now this was the same as MBS and everytime any person has said this is an issue iv told not to worry as the majority of people will use a dynamic IP address and so will mean they change everytime someone disconnects and reconnects to the net.

 to make my life easier as in i wont have to research this myself, all i want is a yes or no answer to this question - the "software" you install, does it report back you a users IP address??

[Abusebyit]

If Micro Bill Systems Ltd, Mr Bateup or Mr Webb breach the undertakings, the OFT could seek a court injunction against them.

They are continuing to act as if the discussions had never taken place, safe in the knowledge that the OFT will not take any action, this is evidenced by their cyber terrorist acts against me during the past 7 days.

I have, hopefully, removed their invasion files;  there have been no pop ups blocking my screen or shortcuts placed on my desktop for the last 36 hours.  If the OFT wishes to use my case as part of the evidence for a prosecution I would be delighted to help, as I guess would many other victims.

[ForumFriend]

They won't approach you - you'll have to contact them.  If you want to send a copy of what you write to them to me or Andy, using the email facility, we can try from our end to take it up with them too.

[Abusebyit]

It has now been 4 infection free days from Platte / MBS;  so unless there is a delayed 'time bomb' virus that I have not found then I am probably clean 

I have wide knowledge of Government bureaucracies such as the OFT and they rarely even acknowledge representations from ordinary nobodys like me unless it suits their own personal / political interests;  my approaching them will be a waste of time. 

[Public Relations - Platte]

With reference to the enquiries of IP number and how we track sign up and usage.
Every Internet Service Provider (ISP) has to record the IP address used by an account, by date and time. This information is recorded by the equipment that controls network traffic through the ISP's network.

This is recorded for every session, even if the IP address changes from previous connections. That is why users may see different IP addresses on their audit logs of site usage.

We, as do most internet companies now, record the IP address, date and time of a user's access to our site and we display this information on our bill notices. We further have on record the ISP that a user signed up through.

Many ISP,s also now log actual internet usage from an account, this is being pushed to be made law as part of the anti-terrorism measures by the Government, over the coming year.

From this information, we can show that a user did go through the process we say they did.

It is not our intention or purpose to bully or frighten people in to paying a bill. This information is to enable the user to be as fully informed as possible of what they did and when.

It further supports our stance that the process people follow to download the software is as we say, due to it being recorded separately by the users own ISP.

The allegations raised against us by some of this forums' members who say that they have never signed up to Get Films Now are unexpected. We categorically confirm that our software can only be downloaded after having gone through a detailed sign up process. The sign up process was developed significantly from that originally used by MBS and sought to ensure that “click happy” internet surfers would not inadvertently sign up to our website and download the software.

Those users that somehow download our software without realizing, represent a tiny proportion of the consumers who download our software. However, the fact that this is still occurring is an issue that we will seek to redress through ongoing development of the sign up process.
 
We fully accept that many users may not remember installing the software but this does not mean they did not do it as claimed and does not absolve them from the obligation they entered into.

Simply by removing the software (something we do free of charge anyway) by the use of unreliable scripts and programs, does not remove the obligation to settle the bill.

We would warn users from using scripts and programs posted on forums or over the internet as some of these (in our recent experience) have shown to include nagware and other undesirable adware advertising functions

IT IS FREE TO UN-INSTALL THE SOFTWARE PLEASE CALL OUR CUSTOMER SUPPORT LINE -  0800 051 6664  (free phone)

Platte Public Relations

[mjerry]

 dear sir

 i read with interest that paragraph which i copied it, just in case?!.

"We read all the postings on all the forums and independently of our claims, can confirm the software installation process has been verified. Please bear in mind, when reading previous posts and claims, that the installation software requires a pin number to be entered by the user, prior to the completion of the installation."

 i, can assure you that there is no such a thing called a pin number. and the more i read about the method of completing of the installation the more i am convinced that i am talking to a different company.
that makes me more and more convinced that a trojan or a third party is involved in the process of installation which is a big hole in the system security found by hackers and used it successfully till people start to complain and object, that probably you at last did make a note of it and decided to do something about it. if not then we are talking through different media.
thanks
mjurry