– EE and Plusnet – owned by BT – failed to implement new rules that help customers shop around
– At least 1.1 million customers were not given contract information before they signed up
– BT must refund early exit fees, and let existing affected customers walk away penalty-free
Ofcom has fined BT £2.8m after it failed to provide more than a million customers with clear and simple contract information before signing up to a new deal.
The company broke our consumer protection rules designed to ensure telecoms customers get clear, comparable information about the services they are considering buying.
Since 17 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.
Ofcom opened an investigation into BT having received information that two of its wholly-owned subsidiaries – EE and Plusnet – may have failed to provide these documents to some customers.
Ofcom found that, since 17 June 2022, EE and Plusnet made more than 1.3 million sales without providing customers with the required contract summary and information documents. The evidence shows there were at least 1.1 million customers affected by this.
Following engagement with Ofcom, BT contacted 1.1 million customers – the majority of those affected – between 26 June and 30 September 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. 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.
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 decided to fine BT £2,800,000, which reflects the seriousness of this breach.
Ian Strawhorne, Ofcom Enforcement Director, commented,
“For people to take advantage of the competitive telecoms market here in the UK, they must be able to shop around with confidence.
“When we strengthened our rules to make it easier for consumers to compare deals, we gave providers a strict timeline by which to implement them. It’s unacceptable that BT couldn’t get its act together in time, and the company must now pay a penalty for its failings.
“We won’t hesitate to step in on behalf of phone and broadband customers when our rules to protect them are broken.”
The Office of Communications, commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunications and postal industries of the United Kingdom.
Ofcom has wide-ranging powers across the television, radio, telecoms and postal sectors.
For additional information on Ofcom visit their Website
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