The UK regulator has imposed penalties on EE (£6.3m) and Virgin Media (£7m) for breaches of consumer protection rules.
Background: Ofcom opened two separate investigations into Virgin Media (June 2017) and EE (May 2018). In the first, Ofcom investigated whether Virgin provided clear information and set termination charges correctly; in the second, it scrutinised EE’s contract terms and how it set termination charges for landline, broadband and mobile services.
What’s new? Today, Ofcom closed both cases ruling that the two companies contravened some of the General Conditions of their licences, and imposed financial penalties on the two firms. It also required them to take steps to comply with their obligations in the future.
What’s next? EE is now required to train its staff appropriately and implement a process for an annual review of termination charges. Virgin has made changes to its processes, which Ofcom accepted. However, Virgin is also appealing the decision, arguing the fine is “unjustified and disproportionate”.
