The Government may seek legal advice about allegations that mobile phone websites are "preying" on children and earning huge revenue from illegal contracts with young people.
The Minister for Enterprise, Trade and Employment, Mr Martin, said his Department would investigate websites which sold mobile ring tones, logos and games through contracts with children under 16 and he said that "these inquiries may involve seeking legal advice on the matter".
Mr Martin, who admitted that he had no prior knowledge about such issues, was responding to Labour TD Dr Mary Upton (Dublin South-Central), who highlighted a German-owned website called Jamster, which was selling ringtones, logos and games, and attracting young people's interest through glossy advertisements.
It is illegal to have a contract with under-16s but "advertisements are placed in magazines heavily bought by children and teenagers".
She said the website "earns a great deal of its revenue from illegal contracts with children and young people who are completely unaware they have agreed to them". The deputy said she had contacted Jamster but was referred to the mobile phone provider, Vodafone, which was unable to offer assistance.
Dr Upton said Jamster's website "boasts of its ability to reap financial rewards from its customer base and of the free ringtone offer as a great teaser to derive response. It also boasts of what it calls high conversion and high payouts, listed as €2 for every sale."
The TD highlighted a complaint from a constituent whose 10-year-old son got a new mobile phone for Christmas with €60 free credit.
"Like many young people, this boy was attracted by a glossy advertisement in a football magazine to the services of Jamster, a provider of ringtones, mobile phone wallpaper and games."
She said the boy joined a Jamster club, but was unaware that he was agreeing to a contract. "He was not asked his age nor did the company stipulate that a subscriber must be at least 16 years," even though its contract, which can be downloaded, outlines that an agreement with a person under 16 is void.
She said she joined the same website and at no time was asked to confirm she was over 16 or informed that she was agreeing to a contract.
The Dublin South-Central TD said the subscriber fee for joining was €8 and €1.65 was charged for every text alert received, which could be sent unsolicited and the youngster had spent all his €60 credit on Jamster.
The Minister said he would examine the draft of a new EU directive on unfair commercial practices to see if the deputy's complaint came within its remit.
