Guardian: Spam text senders face fines of up to £500,000

Two people who sent out millions of texts offering accident compensation first to be targeted by ICO crackdown.

Two people responsible for sending out millions of spam texts offering accident compensation and PPI misselling services now face fines totalling around half a million pounds.

This is the first time the Information Commissioner's Office (ICO) has used new powers to levy fines of up to £500,000 for misuse of personal data. The ICO reports that another eight companies could face similar fines.

The unnamed individuals have been given 28 days to respond to the ICO to explain why they feel their activities were legal. If they cannot justify the texts then a "final penalty notice" will come into force making them personally liable for the payment.

Why the action was taken

The Information Commissioner's Office (ICO) has taken this action after the alarming rate at which text messages offering a variety of credit services has increased.  However, these products and services are actually more likely to have a negative effect on people’s finances.

Firms send out the messages indiscriminately in large volumes, with no details of the sender or knowledge of the recipient’s financial situation.  Out of the hundreds they send, it is unfortunately the most vulnerable that are likely to respond. A typical message would claim recipients are entitled to money such as from payment protection insurance, promise to write off debts or find a loan, or suggest you are entitled to accident compensation.

Why you must never reply – even to say STOP!

These types of message usually state that if you reply with ‘STOP’ you will be removed from their mailing list. However, as soon as the firm receives any sort of response to an unsolicited text message, the sender knows that the number is live.  This means that you are, in fact, more likely to end up being harassed by a higher volume of messages.

What is wrong with this type of text?

The texts messages that the ICO are concerned about are unsolicited and are not the same as the messages that one may receive after giving consent to a company, for instance, when signing up for a newsletter or buying goods online.

Consumers can limit the amount of this sort of texts they receive by being selective about giving out their mobile number.  If the number of texts becomes a problem then you can report spam texts to your mobile network and inform the Information Commissioner.