Ofcom fines BT in ruling that affects 1.1 million EE and Plusnet customers

Ofcom has today 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 regulator said that its subsidiaries EE and Plusnet did not provide new customers with information such as the price and length of the contract, the speed of the service and any early exit fees.

And now the companies will have to identify and contact all customers - around 1.1 million - and give them this information, and the chance to cancel their services without charge.

The company broke 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 investigated and found that, since June 17 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.

Ian Strawhorne, Ofcom Enforcement Director said: “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.”

Ofcom said when it contacted providers including BT to warn them of the regulation it said it was ‘confident’ it would meet the deadline. However Ofcom said: “Evidence we have gathered shows that BT was aware from as early as January 2022 that some of its sales channels would not meet the deadline. In some cases, BT deliberately chose not to comply with the rules on time. Other providers dedicated the resource required to meet the implementation deadline for these new rules, and BT is likely to have saved costs by not doing so.

“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.”

Ofcom said that some customers may have left before the end of their contract and charged an early exit fee. It added: “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.”