July 22, 2019

The PSA explains that Net Real Solutions, based in Spain, offered consumers access to digital content, including games, videos, apps and mobile phone wallpapers, on a subscription basis, charging £4.50 a week.

However, the PSA Tribunal found evidence that consumers had been misled into signing up for the service or were signed up without their consent.

The service had been promoted online via affiliate marketing partners. According to the company that provided their payment platform, over 33,000 consumers were found to have been signed up using malware. This worked by simulating the process of signing up to be billed via pop-up adverts on YouTube.

The PSA received 718 complaints about the service in total. Consumers reported having no knowledge of signing up to the service.

The PSA Tribunal found that Net Real Solutions had failed to secure consumers’ consent to be charged, and had misled consumers, in breach of the PSA Code of Practice for industry.

The PSA Tribunal imposed a fine of £200,000. It stated that it had significantly reduced the fine that it otherwise would have imposed, as the service provider had received very little of the revenue as a result of the consent to charge breach, much of which was instead refunded to consumers by the payment platform provider. Net Real Solutions also voluntarily issued refunds to consumers who were misled into subscribing by content locking.

Access to the service has been barred for two months, and all material to be promoted via affiliate marketing will need to be submitted to the PSA for compliance advice for the next two years.

A General Refunds order has also been issued, meaning that all eligible consumers who request a refund must receive one. To read the PSA’s press release in full and for access to the adjudication minutes, click here.