Ofcom fines BT £2.8m over contract failures for millions of customers

The lack of information means BT has broken the regulator’s consumer protection rules.

The rules came into effect in 2022 and are designed to ensure customers get clear, comparable information about the services they are considering buying.

Ofcom said the fine “reflects the seriousness of this breach”.

After the rules were introduced, BT had assured Ofgem that the group would meet the deadline

However, Ofcom said that its investigation found that from January 2022, BT was aware that some of its sales would not meet the deadline.

The watchdog said: “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.”

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 beforethey 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.

The investigation into BT started following some information received that two of its wholly-owned subsidiaries – EE and Plusnet – may have failed to provide these documents to some customers.

Following engagement with Ofcom, BT contacted 1.1 million customers – the majority of those affected – between June 26 and September 30 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.

However, before these communications were sent, some customers left BT before the end of their contract and may have been charged an early exit fee.

As well as the £2.8million fine, BT must also find and reimburse any impacted customers who were charged exit fees, contact remaining customers who are still with BT and offer them the right to cancel without charge and amend all its sales processes to ensure they meet the rules.

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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.”

A BT spokesperson said: “We’re sorry that some of our Pre-Contract information and Contract Summary documents were not available to some of our customers in a timely manner.

“We apologise for any inconvenience caused and have taken steps to proactively contact affected customers and arrange for them to receive the information and be refunded where applicable.

“We take compliance seriously at BT and we’re working closely with Ofcom to implement the remedial actions as a result of their findings.”