MP calls for law on network cashback policy


Godsiff has been vocal on the issue following the demise of Birmingham-based Dialamobile, which collapsed leaving customers owed around £13 million in cashback debts.

The Birmingham Sparkbrook and Small Heath MP has urged the House of Commons to intervene in the matter and has asked Ofcom to investigate further.

Godsiff told Mobile News: “Ofcom’s voluntary code of conduct highlighting cashback obviously hasn’t worked and they need to look at introducing a statutory regulation to overtake the voluntary code.

“Voluntary codes aren’t worth the paper they’re printed on. I don’t think the industry is capable of self regulation.”

Ofcom said it was reviewing the voluntary code, and whether or not to incorporate the code into the general conditions networks are legally bound by.

“We made it very clear we needed to quickly see a significant reduction in customer complaints. That hasn’t materialised,” said the spokeswoman.

Ofcom chief executive Ed Richards (pictured) said: “If it is found that the voluntary code is proving inadequate, then we will have no choice but to set mandatory standards backed up by the full weight of Ofcom’s powers.”

The results of the review will be released by the middle of next year.

Meanwhile, Godsiff has asked network representatives to release Dialamobile customers from their contracts. He suggested customers could return their free handsets, have their contracts terminated and be reconnected to a more appropriate tariff.

Said Godsiff: “If the mobile companies try to take these people to court, it’s going to end up a highly embarrassing court case and the publicity is going to be appalling for them. They are better off drawing a line as a gesture of goodwill.”