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EnergyOfcom cracks down on illegal downloads
Filed under: TV, Phone & Broadband
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Robert Schlesinger/DPA
However, the new rules, which lead a 'guilty until proven innocent' approach to copyright infringement have been slammed as unfair by consumer groups.
Staying Safe Online
Consumer advice
The new draft code on tackling internet piracy, due to come into effect in early 2014, was outlined yesterday by the broadcasting regulator Ofcom under the Digital Economy Act 2010.
The industry-wide regime will require large internet service providers (ISPs) such as BT, Virgin, Sky and TalkTalk to send warning letters to internet users who are suspected of illegally downloading music, movies and e-books. The letters will warn of the consequences of illegal activity and outline advice on where consumers can go to find licensed content on the internet.
Staying Safe Online
Consumer advice
If a customer receives three or more letters in a year, entertainment companies can ask for details of the material to be shared and apply for a court order to reveal the customer's name and address, with a view to taking legal action for infringement under the Copyright Designs and Patent Act 1988.
While copyright owners can already seek such court orders under existing law, the Code is designed to enable them to focus legal action on the most persistent alleged infringers.
The same Act includes punishments that could, in future, see accused families having their internet service slowed down, capped or even cut off.
Prove innocence
Those wrongly suspected of copyright infringement are able to appeal allegations to an independent body in order to clear their name, yet must pay a £20 fee to do so.
"Copyright infringement is not to be condoned, but people who are innocent should not have to pay a fee to challenge accusations," said Mike O'Connor, Chief Executive of Consumer Focus. "Consumers are innocent until proven guilty. Twenty pounds may sound like a small sum, but it could deter those living on low-incomes from challenging unfair allegations."
Ofcom states that the fee is intended to prevent "vexatious appeals," yet O'Conner believes there is a more effective ways to avoid this. He adds: "This could be achieved without pricing low income consumers out of their right to appeal, by giving the Appeals Body the power to fine those who have brought frivolous appeals.
"However the best way to reduce unnecessary appeals is for Ofcom to require a high standard of evidence from copyright holders, preventing thousands of notifications being sent out on the basis of flimsy evidence."
Potential problems
There are fears that the new regime could hit entirely innocent internet users, for example those who have fallen victim to their wireless connection being hijacked by a neighbour or fraudster.
Andrew Ferguson, editor of ThinkBroadband.com, also thinks savvy fraudsters will find their way around the new code: "A distinct danger with such a long lead time before launch of the campaign, is that those for whom unlawful file sharing is an everyday activity will move to use technology to cover their tracks, making use of proxies and Virtual Private Networks to hide their UK identity."
Entertainment industry
The entertainment industry is being called upon to help combat piracy by embracing shared matieral rather than fighting it. "In two years' time the digital content market will have changed rapidly, even in 2012 the rise of cheap and affordable video streaming services like Netflix and LoveFilm Instant mean there are affordable ways to watch films without the high cost of DVD/Blu-ray box sets," explains Ferguson.
"What needs to happen now is for pressure to build on those record labels and movie studios that are withholding content, so that consumers have a good range of sources for content legally at a reasonable price and in formats that are portable."
10 of the biggest consumer rip-offs
- 1. Mobile data roaming charges<p> <span style="text-align: left; ">Using a mobile phone to make and receive calls, send texts and browse the web while abroad can be extremely costly – especially if you are travelling outside the European Union (EU), where calls can cost up to 10 times as much as at home.</span></p> <div> </div> <div> To avoid high charges, Carphone Warehouse suggests tourists ensure a data cap is in place, use applications to check data usage, turn off 'data roaming', avoid data-intensive applications such as Google Maps and YouTube and use wi-fi spots to update social networking sites.</div>
- 2. PPI<p> <span style="text-align: left; ">Payment Protection Insurance (PPI) is supposed to help people to continue meeting their loan, mortgage or credit card repayments if they fall ill or lose their jobs. However, policies are often over-priced, riddled with exclusions and sold to people who could not make a claim if they needed to.</span></p> <div> </div> <div> At one point, sale of this cover - which was often included automatically in loan repayments - was estimated to boost the banks' profits by up to £5 billion a year.</div> <div> </div> <div> Now, though, consumers who were mis-sold PPI can fight back by complaining to the bank or lender concerned and taking their case to the Financial Ombudsman Service (08000 234567) should the response prove unsatisfactory.</div>
- 3. The Lottery<p> It could be you, but let's face it, it probably won't be. In fact, buying a ticket for the Lotto only gives you a 1 in 13.9 million chance of winning the jackpot.</p> <div> </div> <div> With odds like that, you would almost certainly be better off hanging on to your cash and saving it in a high-interest account.</div>
- 4. Budget airlines<p> No-frills airlines such as EasyJet may promote rock-bottom prices on their websites. But the overall fare you pay can be surprisingly high once extras such as luggage and credit card payment fees have been added - a process known as drip pricing.</p> <div> </div> <div> Taking one piece of hold baggage on a return EasyJet flight, for example, adds close to £20 to the cost of your flight, while paying by credit card increases the price by a further £10.</div> <div> </div> <div> It may therefore be worth comparing the total cost with that of a flight with a standard airline such as British Airways.</div>
- 5. Credit card cash withdrawals<p> Cash advances, which include cash withdrawals, are generally charged at a much higher rate of interest than standard purchases.</p> <div> </div> <div> While the average credit card interest rate is around 17%, a typical cash withdrawal of £500, for example, is charged at more than 26%.</div> <div> </div> <div> What's more, as the interest accrues from the date of the transaction, rather than the next payment date, costs will mount up even if you clear your balance in full with your next payment.</div>
- 6. Supermarket 'deals'<p> Supermarkets such as Tesco and Asda often run promotions under which you can, for example, get three products for the price of two.</p> <div> </div> <div> However, it is only worth taking advantage of these deals if you will actually use the products. Otherwise, you are simply buying for the sake of it, which is a waste of your hard-earned cash.</div> <div> </div> <div> To avoid paying over the odds, it is also worth checking the price per kilo to ensure that larger <a href="http://money.aol.co.uk/2012/05/24/supermarkets-slammed-for-multi-buy-rip-offs/">'economy' packs really are cheaper</a> than the smaller versions.</div>
- 7. Train fares<p> Buy a train ticket at the station on the day of travel and the price is likely to give you a shock - especially if you are travelling a long distance at a busy time of day.</p> <div> </div> <div> However, <a href="http://money.aol.co.uk/2012/03/13/how-to-cut-the-cost-of-your-commute/">you can cut the cost of train travel</a> by 50% or more by going online and making the purchase beforehand - especially if you book 12 weeks in advance, which is when the cheapest tickets are on sale.</div> <div> </div> <div> Other ways to reduce the price you pay include avoiding peak times and taking advantage of so-called carnet tickets, which allow you to buy, for example, 12 journeys for the price of 10.</div>
- 8. Packaged current accounts<p> Most High Street banks offer packaged accounts that come with monthly fees ranging from £6.50 up to as much as £40, with a typical account charging about £15 per month.</p> <div> </div> <div> Various benefits, such as travel insurance and mobile phone insurance, are offered in return for this fee. But whether or not it is worth paying for them depends on your individual circumstances.</div> <div> </div> <div> Before signing up, it is therefore essential to <a href="http://money.aol.co.uk/2012/01/14/maximise-your-current-account/">check that you will make use of enough of the benefits</a>, and that you cannot get them for less elsewhere.</div>
- 9. Overseas withdrawals/card payments<p> Overseas money transfers or travel money purchases attract the same high rate of interest as credit card cash withdrawals.</p> <div> </div> <div> Worse still, most credit cards – and debit cards – also charge you a foreign loading fee if you use them to make purchases while abroad.</div> <div> </div> <div> You can, however, <a href="http://money.aol.co.uk/2012/02/17/how-to-avoid-overseas-bank-fees/">avoid these charges</a> by using a Saga Platinum or Nationwide Building Society credit card.</div>
- 10. Premium rate phone lines<p> Numbers starting 0871 cost 10p or more from a landline, while those starting 09 can cost more than £1 a minute <a href="http://money.aol.co.uk/2012/03/21/call-0800-0808-and-0870-numbers-for-free-from-your-mobile/">from a mobile phone</a>.</p> <div> </div> <div> And the operators of these high-cost phone lines, some of which are banks, often get a cut of the call charges.</div> <div> </div> <div> Most 09 numbers are linked to scams and should therefore be avoided at all costs, while 0871 numbers can often be bypassed by searching for an alternative local rate numbers on the saynoto0870.com.</div>
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