BT has been fined £2.8m by Ofcom after its subsidiaries EE and Plusnet failed to provide clear and concise contract information to over a million customers. The telecommunications company’s failure to comply with industry rules, which came into effect in 2022, affected at least 1.1 million customers.
According to Ofcom, since June 2022, BT’s EE and Plusnet businesses made over 1.3 million sales without providing customers with a contract summary and information documents. “It’s unacceptable that BT couldn’t get its act together in time, and the company must now pay a penalty for its failings,” said Ian Strawhorne, Ofcom’s enforcement director.
BT had assured Ofcom that it would meet the deadline for the new rules when they were introduced in June 2022. However, the watchdog’s investigation found that BT was aware since January 2022 that some of its sales would not meet the deadline. “In some cases, BT deliberately chose not to comply with the rules on time,” said Ofcom. “Other providers dedicated the resources required to meet the implementation deadline for these new rules, and BT is likely to have saved costs by not doing so.”
Ofcom stated that BT had reached out to affected customers last summer and given them the opportunity to request information or cancel their contract without charge. However, some customers had already left BT before the end of their contract and may have been charged an exit fee. Ofcom clarified that according to their rules, if the required contract summary and information are not provided, the contract is not binding on customers. Therefore, the early exit fee should not have been payable by these customers.
In addition to the £2.8 million fine, BT must also identify and reimburse any affected customers who were charged exit fees, contact remaining customers who are still with BT and offer them the opportunity to cancel without charge, and amend all its sales processes to ensure compliance with the rules.
Consumer group Which? welcomed the fine and urged Ofcom to continue taking action against any telecoms firms that break the rules. “It’s absolutely right that Ofcom is fining BT for not providing EE and Plusnet customers with clear contract information before they signed up – as some people will have been hit with pricey exit fees they never should have faced,” said Which? director of policy and advocacy Rocio Concha.
A spokesperson for BT apologized for the inconvenience caused and stated that steps have been taken to proactively contact affected customers and arrange for them to receive the necessary information and refunds if applicable. The company also assured that all sales processes have been amended to ensure compliance with the rules.
