Mobile phone supplier Phones 4U has promised Ofcom it will stop
treating customers unfairly.
The move comes eight months after Ofcom published
new
proposals to fight mobile mis-sellingwhich included a potential
fine of
10% of turnover for those that breach guidelines. This was in
response to consumer complaints that rose from 460 in July 2007 to
700 a month by January 2008.
An Ofcom spokeswoman said Ofcom remained concerned at the level
of mis-selling in the mobile sector. She said it would publish new
general conditions governingthe sale of mobile phones and service
contracts early in the new year, which werelikely to include fines
of up to 10% of turnover against network operators in an attempt to
get them to police their retail outlets better.
A six-month joint
Ofcom and Staffordshire Trading Standards investigation found
that Phones 4U had breached consumer protection laws by: not
providing customers with a refund when they returned faulty
handsets, which were bought directly from Phones 4U, within a
reasonable timeincluding unfair terms in their handset return
policyusing unfair terms contained in "chequeback" schemes
andmaking misleading, false or deceptive representations or
omissions to consumers about matters such as network coverage in
particular areas, or what was included in their mobile phone
plan.
Phones 4U has made changes to its handset return policy,
"chequeback" terms and conditions, and sales practices,
particularly relating to informing consumers what their network
coverage will be, what their mobile plan will contain and
cancellation rights and upgrades.
Ofcom saidPhones 4U co-operated fully during the investigation,
which led to a "substantial reduction" in complaints. Ofcom and
Staffordshire Trading Standards will monitor complaints about
Phones 4U to make sure it complies with the undertakings.
Ofcom has
more
information for consumers about mobile mis-selling.