Industry watchdog Ofcom is to investigate claims from consumers and Trading Standards that Lycatel has been giving customers less minutes than tariffs indicate.
Suffolk and Tower Hamlets Trading Standards contacted Ofcom with concerns around Lycatel’s advertising practices.
Ofcom will begin interviewing a number of complainants to determine whether the calling cards business has breached any relevant consumer protection law. It will also look into whether Lycatel is publishing up to date pricing information.
In 2004, Ofcom held an investigation in to the international calling card market as a number of businesses were failing to properly advertise prices, terms and conditions.
If found guilty of breaching consumer law, Ofcom can fine Lycatel up to 10 per cent of its turnover.