News releases 2008
News releases
ITV statement on OFCOM PRS Findings
08/05/2008
ITV plc accepts the findings published by the Ofcom Content Sanctions Committee in respect of Premium Rate Services. ITV plc has also today:
- Published the new measures and procedures put in place since the Premium Rate Services (PRS) issues were identified, including fundamental changes to ITV plc’s compliance and telephony systems;
- Confirmed the list of charities receiving donations as a result of ITV plc’s reimbursement process;
- Published the findings of Olswang’s independent investigation into the British Comedy Awards 2005.
Michael Grade, Executive Chairman of ITV plc, said: “Ofcom’s announcement today is an appropriate moment to restate ITV’s unreserved apology to the public for breaches that took place between 2003 and January 2007.
“We welcome Ofcom’s recognition of the ‘wide ranging and timely’ steps voluntarily undertaken by ITV. ITV has gone further than any other broadcaster in instigating an independent, systematic and comprehensive investigation into all allegations around premium rate services in its programmes. We believe that Ofcom’s scrutiny of the evidence we provided will reassure viewers and rebuild the public’s trust in ITV.
“Since the publication of Deloitte’s findings, ITV has totally re-engineered its editorial, compliance and training procedures to safeguard against any recurrence of such breaches of trust. We have also taken a number of disciplinary measures. Anyone working with or for ITV going forward is in no doubt of the standards expected and the consequences if they fall short.”
“For anyone who cares about British broadcasting the Ofcom findings and the Deloitte review make for sorry reading. It is clear that these serious breaches of trust were evidence of gross editorial errors of judgement designed, mistakenly, to enhance the viewer experience. In no case is there evidence that there were any corrupt attempts to generate further revenues.”
Following the Deloitte review ITV plc announced a comprehensive scheme to reimburse viewers affected. The amount to be reimbursed was calculated at over £7.8 million. This represents the amount spent by affected consumers, which is almost double the amount ITV actually received from these calls. Recognising that the actual amount claimed by consumers might be a small proportion of this total, ITV took the decision to donate the difference to charity and ITV has today published a list of those charities that have benefited.
Separately from the Deloitte process, in September 2007 ITV plc appointed law firm Olswang to conduct an independent investigation into allegations regarding the British Comedy Awards 2005, produced for the ITV Network by independent production company Michael Hurll Television. ITV has passed Olswang’s findings to Ofcom. ITV plc is not involved in Ofcom’s ongoing formal investigation into this programme. Channel Television Ltd was the licensee responsible for the compliance of the programme and is therefore the other party to this process, which has yet to be concluded.
The following papers are attached to this press release:
- Key PRS Operational Changes made by ITV since the Deloitte Review
- List of charities receiving donations following the reimbursement process
- Olswang’s summary of its findings with regard to the British Comedy Awards 2005
NOTES TO EDITORS
- In March 2007, ITV appointed Deloitte & Touche LLP to carry
out a comprehensive review of the use of premium rate interactive
services (“PRS”) in programming on all ITV channels.
This work has been conducted in three phases:
- In Phase 1, Deloitte reviewed procedures in relation to PRS in specific programmes which were being broadcast or about to be broadcast at the date of the announcement in order to strengthen procedures as necessary;
- In Phase 2, Deloitte helped to identify processes and controls that could be put in place to reduce the risk of failures arising in the future; and
- In Phase 3, Deloitte undertook an investigation to establish the nature and scale of any incidents relating to the provision of PRS which have occurred in ITV programmes over the last two years from 1 April 2005 to 31 March 2007
- The Findings of the Deloitte Review and ITV Investigation into use of PRS services in ITV Programming were published on 12 October 2007 and are available at www.itvplc.com
- Subsequent to the publication of the Findings, allegations were made regarding PRS irregularities in relation to X Factor. Deloitte was asked to investigate these allegations. Their investigation did not identify any evidence to support these allegations.
Contacts:
ITV Communications:
Ruth Settle – 0844 881 8225
James MacLeod 0844 881 8018
Tulchan Communications:
Tel: 0207 353 4200
Andrew Grant
Susannah Voyle
ITV Investor Relations:
Christy Swords – 0207 156 7022
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