BT has been ordered to issue refunds to over 1.1 million customers for failing to provide clear information before they signed up for services from EE and Plusnet, which the company owns. The telecoms watchdog Ofcom has fined BT £2.8 million for not giving customers adequate information on contract prices, lengths, and fees to end contracts early.
Ofcom stated that in some cases, BT “deliberately chose” not to comply with the rules, which require companies to provide clear and simple details of a contract before customers sign up. BT has apologized for the inconvenience caused and has committed to implementing the necessary remedial actions.
Affected customers who are still with BT have been given the option to walk away from their contract without being charged, or to request the information that should have been provided at the start. Customers who have already left may have been charged exit fees, and BT has five months to refund these fees.
Despite knowing since January 2022 that it would not meet the June 2022 deadline for all customers, BT still has some non-compliant sales channels and is not providing the required information to some customers at the right time, according to Ofcom. The company has three months to make these sales methods compliant with the rules.
The original fine was reduced by 30% due to BT’s admission of liability and agreement to settle the case. BT, which serves over 30 million customers in the UK, acquired PlusNet in 2006 and EE in 2015. The company has pledged to proactively contact affected customers and arrange for refunds where applicable.
