Home phone News

Ofcom introduces new rules to protect landline customers

Wednesday 17 March, 2010

By Becca Talbot - becca@consumerchoices.co.uk

Britain’s landline suppliers will have to adhere to strict new mis-selling guidelines imposed by Ofcom, or risk facing massive fines.

Telecoms regulator Ofcom is attempting to protect consumers from sharp practices such as mis-selling and “slamming” telephone services.

Ofcom is issuing strict new guidelines for the UK’s home phone providers and broadband providers.

Last year the regulator received an average of 750 complaints a month, from customers that were being mis-sold home phone contracts. Ofcom has previously investigated 14 companies for breaches of the current regulations. Examples of mis-selling issues reported to Ofcom include:

• Receiving calls from telecoms providers pretending to be another company
• Telecoms providers incorrectly advising consumers of package costs
• Telecoms providers not properly informing consumers of any minimum contract periods and early termination charges that might be applicable.

The new rules, which come into force tomorrow, will see landline companies face fines of up to 10% of their turnover if they fail to stop mis-selling home phone contracts to customers or continue to switch customers’ landline tariffs without their knowledge (known as “slamming”).

Ofcom said the new rules are designed to strengthen protection for consumers, and enable it to take swift and more effective action against telecoms providers that break them.

Ed Richards, chief executive at Ofcom, said: “It is not acceptable for consumers to suffer from companies engaging in dishonest sales and marketing activity. Ofcom will not hesitate to take enforcement action against firms who don’t comply with the new rules.”

The new rules will also require providers to keep better records of their sales and marketing activities, as well as providing customers with the contract terms and conditions straightaway.

Simon Piper, business development manager at Homephonechoices.co.uk, said: “It’s good to see that Ofcom is finally taking a stand and is looking to protect consumers from these unfair switching tactics.”

In October last year, Britain’s biggest phone company, BT, called on the regulator to help protect its customers and put a stop to landline providers scamming British households with mis-selling and slamming practices.