Original article ISPreview UK:Read More
The telecoms regulator has today revealed that UK broadband ISP and phone giant BT (inc. EE and Plusnet) have now refunded or credited £18m back to customers. This follows last year’s Ofcom ruling (here), which found that the provider had “failed to provide” 1.1 million customers with clear and simple contract information before signing up to a new deal.
Just to recap. Since June 2022 broadband and mobile operators have been required to provide customers with a short, one-page summary of the main contract terms of their chosen package before entering into a contract, including clear examples of how any price increases might impact the price they pay. But Ofcom’s investigation found that EE and Plusnet had failed to do this for a sizeable number of customers and fined BT £2.8m.
As well as fining BT, Ofcom also required the provider to amend its sales process and refund any affected customers who may have been charged for leaving before the end of their contract period. “We told the company that if it was unable to refund any money, it must donate it to charity,” said the regulator.
As a result of this enforcement action, Ofcom has today posted a brief after action report that reveals how BT has now refunded or credited £18 million back to customers and donated £440,000 across 17 charities where refunds or credits were not possible.
Ofcom Statement
The company broke our consumer protection rules designed to ensure telecoms customers get clear, comparable information about the services they are considering buying.
Following engagement with Ofcom, BT contacted the majority of affected customers, explaining that it had not provided them with the information to which they were entitled, and giving them the opportunity to request the information and/or cancel their contract without charge.
However, before these communications were sent, some customers affected by the breach left BT before the end of their contract and may have been charged an early exit fee. Our rules are clear 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.
As well as fining BT, we also required it to amend its sales process and refund any affected customers who may have been charged for leaving before the end of their contract period. We told the company that if it was unable to refund any money, it must donate it to charity.
As a result of this enforcement action, BT has now refunded or credited £18 million back to customers and donated £440,000 across 17 charities where refunds or credits were not possible.