xbiz world
xbiz premiere

Changes In International Dialer Regulations

While some Webmasters and sponsors are still making good money with dialers outside of the USA, this scenario may change, as more and more legislatures throughout Europe are restricting dialer and premium rate number operators. For instance, beginning on April 1st, 2004, dialers will be prohibited in Switzerland. This new law will ban all dialers, and Premium Rate Numbers (0900) are affected by the law as well. All numbers that cost at least SFR 2 per minute (approximately $1.56/minute USD), will have to announce the price once the connection is established. Premium numbers which charge more than SFR 5 per minute (approximately $3.90/minute USD) will require that the disclosure of the price/rate be confirmed with a confirmation by the caller. The caller will have to press a certain key to confirm that he knows he will be charged this high rate. Becoming effective at the end of 2003, the new German dialer law, Gesetzes zur Bekämpfung des Missbrauchs von Mehrwertdiensterufnummern or "The Law to Combat Abuse of Premium Rate Numbers," requires that every single dialer be registered with the RegTP (German Telecommunication Commission), and that users can easily obtain contact information about the dialer company (name, address, telephone number). A maximum of 30 EUR (approximately $37 USD) per call, and a maximum of EUR 2 per minute (approximately $2.40/minute USD) can now be charged. 0190 numbers are now forbidden for dialers (all dialers previously used this number). These old numbers are now considered illegal, and all old customers must be cut off. The new acceptable dialer number is 0909, and the connection to dialer calls will be cut off after 60 minutes (1 hour) of use. Companies that don't follow the new law can be fined up to 100.000 EUR (approximately $125,000 USD) The new German dialer law will lead to a drastic fall of revenue and massive charge backs. As the former Government Telco (Deutsche Telekom) will no longer guarantee payouts for these transactions, there may be a massive problem receiving monies due. In a recent ruling, the German Supreme Court said, "If a user is not informed of the rate for the dialer, or if the dialer just established connections without the knowledge of the user, then there is no legal basis to get the money from the user. That means that users only have to pay if the knew exactly what the costs were and if they confirmed all connections." (BGH III ZR 96/03, March 4th, 2004). This will lead to a drastic rise in charge backs. There is a new law in Spain as well. "The Modem Law" which effectively makes Premium Data almost dead. Among other reasons for the dismal speculation, this new law provides that the client will not be billed for the first 20 seconds of each connection. These types of legal challenges are leading many Webmasters to re-create their global business strategy and think about how they will conduct business abroad in the future, and turning to affiliate programs like SEXMoney.com who offer Webmasters working in the aforementioned markets a diverse payment program. According to Matthew "Chipmunk" Sclier, Marketing & Webmaster Relations North America, "Direct Debit is currently the most popular mode of payment, due to the fact that Credit Card penetration in Germany and other countries is only at about 22%."

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Seoul Authorities Force Cancellation of Adult Expo for 'Distorting Perceptions of Sex'

After Seoul authorities repeatedly prevented 2024 KXF The Fashion from finding a suitable venue, event organizers have canceled the popular Korean adult industry expo, which was scheduled for this week.

FSC to Hold Discussion on Adult Industry Rights With Congressional Candidate Joe Cohn

Free Speech Coalition will hold a virtual discussion with Joe Cohn, a strong advocate for the adult industry’s rights who is running for Congress in November.

Sophie Dee, Ricky Johnson to Deliver 'XBIZ Talks' at Miami Conference

XBIZ is pleased to announce that Sophie Dee and Ricky Johnson will each deliver an “XBIZ Talk” at next month’s XBIZ Miami conference

FSC to Host Webinar on Derisking and the Adult Industry

The Free Speech Coalition (FSC) is hosting a webinar on derisking, titled "Derisking: Examining Its Impact on the Adult Industry's Access to Banking," on April 24 at 11 a.m. (PDT).

Democratic Governor Fails to Veto Kansas Age Verification Bill

Kansas’ Democratic governor, Laura Kelly, expressed strong reservations about the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, but ultimately decided not to veto it, allowing the legislation to become law by default without her signature.

FSC's Alison Boden Testifies Against California Age Verification Bill, Urges Action to Defeat It

Free Speech Coalition Executive Director Alison Boden testified Tuesday against AB 3080, California’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Phoenix Marie Sues Aylo, Danny D Over Incident on Digital Playground Set

Phoenix Marie has filed a lawsuit against Aylo, performer/producer Danny D and other defendants, alleging she has suffered defamation and damage to her career over a 2023 incident on a Digital Playground set in Spain.

New Premium Creator Platform 'Lemon Social' Launches

Premium creator platform Lemon Social has debuted.

MomPOV Producer Pleads Guilty in GirlsDoPorn Case

MomPOV producer Doug Wiederhold, who was formerly the partner of GirlsDoPorn owner Michael Pratt as well as the first male talent for GDP, pleaded guilty Thursday to a federal conspiracy charge.

Streamate Exec Liz Rek Joins FSC Board

The Free Speech Coalition board of directors has tapped Streamate executive Liz Rek as its newest member, effective immediately.

Show More