In a significant move towards enhancing transparency, BT has refunded £18 million to customers following an Ofcom investigation. This action came after the company and its subsidiaries, EE and Plusnet, failed to provide clear contract information to around 1.1 million customers as per new rules established by Ofcom in 2022. These rules mandated that telecom operators in the UK give customers a concise summary of essential contract details, especially highlighting any potential price hikes during the contract.
The investigation by Ofcom, initiated in January 2024, revealed BT’s non-compliance with the regulations. To address this, Ofcom imposed a £2.8 million fine on the company and instructed them to refund affected customers who paid early cancellation fees due to lack of information. Additionally, if certain customers couldn’t be reached, BT was required to donate the equivalent amount to charity.
This week, BT announced it had adhered to the directives by refunding the aforementioned amount and donating £440,000 to 17 charities. A company spokesperson expressed regret over the lapse, stating, “We’re sorry that pre-contract information and contract summary documents were not available to some of our customers in a timely manner.” He emphasized BT’s ongoing commitment to compliance by stating they had been in close coordination with Ofcom to implement all necessary corrective measures.
This case marks the second major penalty for BT from Ofcom in the past few years. The previous fine, amounting to £17.5 million, was due to an inability to handle 14,000 emergency calls in 2023, a failure described as ‘catastrophic’.
Such occurrences spotlight the evolving UK connectivity landscape. As the industry grows and digital transformation accelerates, regulatory frameworks are likely to become more stringent. Telecom enterprises will need to navigate these frameworks meticulously to maintain consumer trust and avoid substantial penalties. As BT’s recent experience shows, proactive compliance and effective communication strategies are indispensable for sustainable growth in today’s market.
