MOBILE PHONE operators have been accused of failing to curb the growing number of companies who dupe people into signing up to costly long-term subscriptions.

Consumer groups claim that the operators, including Orange and O2, have failed to act because they are taking a cut of the proceeds.

The rogue businesses sign up customers who unwittingly tick a box or respond to a text message and subsequently find themselves subscribed to expensive services such as games, ringtones and competitions that they do not want and cannot cancel.

The mobile phone companies that sell the premium-rate numbers in the first place say that they have strict standards about the type of companies they will work with and have introduced a code of practice. However, they take a cut of about 20 per cent for each text sent or 30p for a £1.50 text.

The problem is exacerbated by the recycling of mobile phone numbers. Icstis, the premium-rate phone regulator, says mobile phone companies have confirmed that some customers who take over old numbers are being charged for premium-rate services used by former owners.

Bill Mieran, chairman of the Telecommunication Users Association, says: “Wherever these revenue-sharing opportunities exist, it can impair the judgment of the mobile companies. They have a responsibility to make sure any billings they are making are genuine.”

Norman Lamb, the Liberal Democrat trade and industry spokesman, says: “Whatever the mobile companies say, there is a conflict of interest. Any rules that they have are not tough enough. If they are making money from these services, they have a responsibility to make clear to customers what they are paying for.”

The mobile companies and Icstis maintain that consumers cannot be charged for something without their agreement. But many consumers who have received bills for these services insist that they never signed or agreed to anything.

Kelhem Salter, 24, (see case study, right) says that he has never actively signed up to any service but he has been billed £180 for six different services. Another man discovered that his mother-in-law was being billed regularly for premium text services, even though she did not know how to text.

These services are legal as long as the provider adheres to a list of rules. These include making clear the nature of the service, how much it costs and how customers can end their subscriptions. A company that fails to comply can be fined or barred from operating. In the past four months, Icstis has fined or barred 14 companies from operating after receiving 141 complaints.

In one recent adjudication, MonsterMob, a stock market-listed provider of mobile content and games, was fined £10,000 and threatened with having its operations barred for six months.

Consumers complain of being powerless. In most cases, unsubscribing entails phoning a recorded service that does not offer the opportunity to obtain a refund. Many customers are still billed for texts even after they have unsubscribed. Icstis is urging people to detail their complaints so that it can take action.

A spokesman for O2 says: “It is not in our interest to confuse or irritate our customers. We take feedback seriously and if companies we work with are not playing by the rules, we will take action.”

Orange says that it is under no obligation to warn customers that they have signed up to such stealth offers. A spokesman says: “If a customer wishes to unsubscribe from a service, they are advised to send the word STOP to the number in question. If a customer still receives messages, Orange will help them to contact the company and will also put them in touch with Icstis.”

Case study: Orange leaves bitter taste

KELHEM SALTER, 24, is adamant that he has never signed up for a premium mobile subscription service. Yet over the past five months he has been billed £180 by Orange for six different services.

“I saw short text numbers appearing all over my bills at £1.28 a time,” he says. All he has received is texts offering the chance to

enter competitions. Orange told him that it knew about the services and directed him to a number to stop the texts. “If Orange knows about it, why doesn’t it stop it happening?” he says. So far he has been unable to claim back the money.

Orange told Times Money that Mr Salter unwittingly signed up for a service in October when buying flights through an online travel site. A clause, buried in the terms and conditions, states: “(You) agree to receive promotional material either by post, e-mail, phone or SMS text.” The text messaging service is provided by a company that specialises in text message offers.