Ofcom has launched an investigation into Phones 4U after a large number of customer complaints filed in the past six months regarding misselling.
Complaints were made both to Ofcom and Consumer Direct, which is part of Trading Standards. An Ofcom spokeswoman said customer concerns included Phones 4U staff allegedly misrepresenting tariff terms and cashback deals to customers, failing to provide full cashback conditions, making redemption conditions too stringent, and offering handset upgrades to customers without outlining costs.
Ofcom expects the investigation to take around six months. It will obtain evidence from the complainants and Phones 4U.
If the allegations are found to be true, Phones 4U will be in breach of the Enterprise Act 2002, which deals with consumer protection. Ofcom would seek to bind Phones 4U to a legal commitment to cease such activity.
A Phones 4U spokesperson said: “We intend to cooperate fully with Ofcom in this matter and we are in discussion with them.
“Phones 4U prides itself in maintaining the highest standards of customer service. If any instances where this has not been the case are brought to light, as a result of this enquiry, we will act accordingly.”