Info from /advanced-television.com/ofcom-fines-bt-2-8m-for-customer-contract-failures/
and /ispreview.co.uk/ofcom-fines-bt-2-8m-over-uk-customer-contract-info-failings
UK media regulator Ofcom has fined BT £2.8 million (€3.2m) after it failed to provide more than a million customers with clear and simple contract information before signing up to a new deal.
Ofcom stated that the telco broke its consumer protection rules designed to ensure telecoms customers get clear, comparable information about the services they are considering buying.
Since June 2022, phone and broadband companies have been required to give consumers and small businesses the details of a contract, as well as a short summary of its key terms, before they sign up. This must include information such as the price and length of the contract, the speed of the service and any early exit fees.
Following engagement with Ofcom, BT contacted 1.1 million customers – the majority of those affected – between June 26th and September 30th 2023, explaining that it had not provided them with the information to which they were entitled. Those customers have been given the opportunity to request the information and/or cancel their contract without charge.
However, before these communications were sent, some customers left BT before the end of their contract and may have been charged an early exit fee. Ofcom rules state that if the required contract summary and contract information is not given, the contract is not binding on customers. As a result, an early exit fee should not have been payable by these customers.
Also, some sales channels are still non-compliant and BT is still not providing the required information at the right time to some customers.
As a result of these failures, Ofcom has fined BT £2,800,000, which it says “reflects the seriousness of this breach”.
As well as fining BT, Ofcom are also requiring it to:
- identify and refund any affected customers who may have been charged for leaving before the end of their contract period, within five months of this decision;
- within three months, contact the remaining affected customers who are still with BT and have not already been contacted, to offer them their contract information and/or the right to cancel their contract without charge; and
- amend remaining sales processes that are still non-compliant to ensure that all customers receive the right information at the right time, in most cases within three months of this decision.
As a result of these failings, Ofcom has today decided to fine BT £2,800,000 to reflect the “seriousness of this breach.” As well as fining BT, Ofcom are also requiring them to identify and refund any affected customers who may have been charged for leaving before the end of their contract period, within 5 months of this decision.
On top of that, BT has been given 3 months to contact the remaining affected customers who are still with the operator and have not already been contacted, to offer them their contract information and/or the right to cancel their contract without charge.
Finally, BT has been told to amend the remaining sales processes that are still non-compliant to ensure that all customers receive the right information at the right time, in most cases within three months of this decision.
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