Channel 4 slugged with £1.5 million fine over Richard and Judy phone-in scam

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The media regulator had been investigating the company over allegations that viewers were phoning in to the afternoon show when they had no chance of winning.

It emerged nearly three million viewers were encouraged to pay £1 to enter the You Say We Pay quiz – after winners had been chosen.

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Presenter couple Richard and Judy say they are planning new projects

'You Say We Pay' was initially suspended from the channel's afternoon chatshow Richard and Judy in February.

Channel 4 subsequently offered to refund money to any participant who had been affected, after admitting breaching official rules and deceiving the public.

It also said that it would donate to charity all money made from the quiz that had not been claimed by consumers through a refund offer.

An initial payment of £50,000 was made by the channel to the Great Ormond Street Hospital, a figure which has subsequently risen to £250,000.

The fine comes after GMTV was punished with a record £2 million penalty in September for misconduct in regard to premium rate phone in competitions.

Deal or No Deal selected competition finalists in a way which gave later entrants less chance of winning.

Eckoh UK, the company behind Richard and Judy competition You Say, We Pay, has already been fined £150,000.

In November Richard and Judy announced that they would be leaving the channel after deciding not to renew their contract.

Channel 4 said it would like to "apologise once again" to viewers.