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ITV fined $11.1M over phone-in promotions



08 May 2008 @ 01:56 pm EST

LONDON (AP) - Britain's communications regulator on Thursday imposed a record fine of $11.1 million against British broadcaster ITV PLC for repeated abuses of phone-in promotions and competitions on some programs.

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The Office of Communications set a fine of 5.67 million pounds for what it call "some of the most serious breaches of OFCOM's Broadcasting Code concerning the abuse of premium rate services."

The regulator found that contestants for one competition were not chosen at random, that prize winners on another show were not chosen at random, and that voting on evictions on "Soapstar Superstar" were rigged.

ITV has also pledged an additional 7.8 million pounds ($15.3 million) for viewer compensation and contributions to charities, the agency said.

ITV shares fell 0.3 percent to close at 67.7 pence ($1.33) on the London Stock Exchange.

The agency could have fined ITV up to 70 million pounds ($137 million), or 5 percent of commercial revenue. The previous highest fine it imposed was 2 million pounds ($3.9 million) in September against GMTV, in which ITV holds a 75 percent stake.

"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," said Michael Grade, ITV's executive chairman.

"ITV has totally re-engineered its editorial, compliance and training procedures to safeguard against any recurrence of such breaches of trust," Grade added.

"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."

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