UK regulator fines Virgin Media $37 million for preventing contract cancellations
Details of Ofcom's Fine Against Virgin Media
July 8 (Reuters) - British media regulator Ofcom fined Virgin Media £28 million ($37 million) on Wednesday for repeatedly preventing customers from cancelling contracts over nearly a three-year period between 2022 and 2024.
Background and Investigation
Here are some details on the regulator's decision:
Systemic Failings in Contract Termination
• Ofcom said its probe into Virgin Media, a joint venture between Spain's Telefonica and Liberty Global, uncovered systemic and repeated failings in the mobile operator's contract termination procedures.
Specific Tactics Identified
Call Handling Issues
• "Investigation uncovers deliberate call-dropping tactics, excessive and unnecessary call transfers and putting customers repeatedly on hold for no reason," the watchdog said.
• The issue lasted from January 2022 to about mid-September 2024.
Previous Regulatory Actions
• Ofcom had imposed a £23.8 million fine on the firm in December for disconnecting telecare customers during its programme to migrate customers to digital landlines.
Virgin Media's Response
• Virgin Media said: "We're committed to giving all our customers great service and apologise to the small proportion who experienced an issue when contacting us to agree a new deal or cancel their service in the past.
• "We have completely redesigned our customer services in recent years, addressing the historic shortfalls identified by Ofcom through a number of improvements, and have resolved all formal customer complaints from this period providing redress where appropriate."
Additional Information
($1 = 0.7491 pounds)
(Reporting by Prerna Bedi in Bengaluru and Paul Sandle in London. Editing by Harikrishnan Nair and Mark Potter)
