New Rules Set To Stop Mis-Selling

• News
• Published: 17 Mar 2010 in Household and Gas Electricity

Strict penalties are to be introduced for telecoms companies that mis-sell services, it has been revealed.

Companies that breach the latest rules to be introduced by the communications regulator Ofcom could face fines of up to 10% of their turnover.

The rules, which come into force on Thursday, are designed to give better protection to the consumer.

They will also allow for swift action to be taken against companies that break them.

The action is being taken to prevent landline providers being dishonest with customers, and stop actions such as "slamming", where people are switched without their knowledge from one company to the next.

Ofcom chief executive Ed Richards said: "It is not acceptable for consumers to suffer from companies engaging in dishonest sales and marketing activities. Ofcom will not hesitate to take enforcement action against firms who don't comply with the new rules."

The regulator said it receives about 750 complaints a month relating to mis-selling and slamming.

Consumers complain about calls from providers pretending to be another company, providers quoting incorrect package costs and poor information about minimum contract periods and early termination charges.

Ofcom has previously investigated 14 companies for breaching regulations and fined two providers 10% of their turnover for failing to comply.