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Ofcom | TalkTalk and Tiscali UK customers compensated after Ofcom investigation
Ofcom’s investigation into TalkTalk and Tiscali UK has resulted in almost £2.5 million in refunds and good will payments after thousands of consumers were incorrectly billed for cancelled services.
Ofcom opened an investigation into TalkTalk and Tiscali UK in July 2010 following complaints from over 1,000 consumers. Both were issued with a legally-binding notification in November 2010 and set a deadline of 2 December 2010 to take steps to comply with telecoms rules which prohibit communications providers from billing customers for services that haven’t been provided. TalkTalk and Tiscali UK were also required to remedy the breach of the regulations by the same date, for example, by paying refunds to affected customers.
Significant steps
Under the law as it currently stands, Ofcom must allow a company a period of time to come into compliance with the regulations by a set deadline. If the company takes action to comply with the rules by the deadline, Ofcom cannot impose a financial penalty.
TalkTalk and Tiscali UK have taken significant steps to fix the problem and to comply with the regulations by the deadline set, in direct response to Ofcom’s action. These steps include identifying and compensating some 62,000 affected consumers. On this basis, Ofcom is not in a position at present to impose a financial penalty on the companies under our current legal powers.
Changes to regulations
However, the Government is currently consulting on changes to the law. Under these changes, Ofcom would be able to issue a financial penalty for breaches of the regulations, regardless of whether a company subsequently took action to address the problem. If the Government decides to proceed with these changes, these new powers would be available to Ofcom on 25 May 2011.
Ofcom welcomes the proposed changes to the law.
Continuing investigation
Despite the actions taken by TalkTalk and Tiscali UK, Ofcom is still receiving some complaints from consumers. In light of these and information obtained from the companies, Ofcom will continue its investigation into their compliance with the regulations.
If the investigation reveals that TalkTalk or Tiscali UK have continued to breach the regulations, they could still face further enforcement action including a financial penalty.
Further details about the investigation can be found here.
Advice for consumers on how to complain about their provider can be found here. Affected consumers can contact TalkTalk and Tiscali UK directly on their dedicated hotline: 0800 5428 073.
ENDS
NOTES FOR EDITORS
1. Section 45(1) of the Communications Act 2003 gives Ofcom the power to set conditions, including General Conditions. One of those conditions is General Condition 11.1. It says communications providers must not send bills to customers unless every amount in those bills represents the true extent of any such service actually provided.
2. Under section 94 of the Communications Act 2003 Ofcom can issue a Notification where it has reasonable grounds for believing a person (or company) is contravening or has contravened a General Condition. That is what Ofcom did in this case. As the law currently requires, the notification gave TalkTalk and Tiscali UK a month to make representations, comply with the relevant condition and remedy the consequences of the contravention.
3. These rules are part of the way the European Electronic Communications Framework is implemented in the UK. The Framework is intended to ensure more effective competition and better rights for consumers across the 27 EU Member States. Revisions to the Framework were agreed in late 2009 and Member States have been given until 25 May 2011 to transpose the changes into national law.
4. The revised Framework makes a number of changes to the enforcement powers granted to Ofcom to enable it to deal more effectively with breaches of regulations. The changes form part of a current Government consultation: http://www.bis.gov.uk/assets/biscore...nsultation.pdf.
Ofcom’s investigation into TalkTalk and Tiscali UK has resulted in almost £2.5 million in refunds and good will payments after thousands of consumers were incorrectly billed for cancelled services.
Ofcom opened an investigation into TalkTalk and Tiscali UK in July 2010 following complaints from over 1,000 consumers. Both were issued with a legally-binding notification in November 2010 and set a deadline of 2 December 2010 to take steps to comply with telecoms rules which prohibit communications providers from billing customers for services that haven’t been provided. TalkTalk and Tiscali UK were also required to remedy the breach of the regulations by the same date, for example, by paying refunds to affected customers.
Significant steps
Under the law as it currently stands, Ofcom must allow a company a period of time to come into compliance with the regulations by a set deadline. If the company takes action to comply with the rules by the deadline, Ofcom cannot impose a financial penalty.
TalkTalk and Tiscali UK have taken significant steps to fix the problem and to comply with the regulations by the deadline set, in direct response to Ofcom’s action. These steps include identifying and compensating some 62,000 affected consumers. On this basis, Ofcom is not in a position at present to impose a financial penalty on the companies under our current legal powers.
Changes to regulations
However, the Government is currently consulting on changes to the law. Under these changes, Ofcom would be able to issue a financial penalty for breaches of the regulations, regardless of whether a company subsequently took action to address the problem. If the Government decides to proceed with these changes, these new powers would be available to Ofcom on 25 May 2011.
Ofcom welcomes the proposed changes to the law.
Continuing investigation
Despite the actions taken by TalkTalk and Tiscali UK, Ofcom is still receiving some complaints from consumers. In light of these and information obtained from the companies, Ofcom will continue its investigation into their compliance with the regulations.
If the investigation reveals that TalkTalk or Tiscali UK have continued to breach the regulations, they could still face further enforcement action including a financial penalty.
Further details about the investigation can be found here.
Advice for consumers on how to complain about their provider can be found here. Affected consumers can contact TalkTalk and Tiscali UK directly on their dedicated hotline: 0800 5428 073.
ENDS
NOTES FOR EDITORS
1. Section 45(1) of the Communications Act 2003 gives Ofcom the power to set conditions, including General Conditions. One of those conditions is General Condition 11.1. It says communications providers must not send bills to customers unless every amount in those bills represents the true extent of any such service actually provided.
2. Under section 94 of the Communications Act 2003 Ofcom can issue a Notification where it has reasonable grounds for believing a person (or company) is contravening or has contravened a General Condition. That is what Ofcom did in this case. As the law currently requires, the notification gave TalkTalk and Tiscali UK a month to make representations, comply with the relevant condition and remedy the consequences of the contravention.
3. These rules are part of the way the European Electronic Communications Framework is implemented in the UK. The Framework is intended to ensure more effective competition and better rights for consumers across the 27 EU Member States. Revisions to the Framework were agreed in late 2009 and Member States have been given until 25 May 2011 to transpose the changes into national law.
4. The revised Framework makes a number of changes to the enforcement powers granted to Ofcom to enable it to deal more effectively with breaches of regulations. The changes form part of a current Government consultation: http://www.bis.gov.uk/assets/biscore...nsultation.pdf.
