New rules by industry regulator Ofcom are to stamp out the mis-selling and ‘slamming’ of landline propositions.
Telecoms businesses found mis-selling or ‘slamming’, which is switching the customer’s service provider without their knowledge, will be fined up to 10 per cent of their turnover.
The new rule, General Condition (GC) 24 rule was established to strengthen protection for consumers and to enable Ofcom to act quicker. Under GC 24, companies must keep better records of sales and marketing activities, confirm all relevant information is passed on to the consumer and provide clear details for the cancellation of orders.
Ofcom claimed ‘slamming’ and mis-selling is the most complained about issue it receives from fixed line users, with around 750 complaints per month last year.
Ofcom chief executive Ed Richards said: “It is not acceptable for consumers to suffer from companies engaging in dishonest sales and marketing activity. Ofcom will not hesitate to take enforcement action against firms who don’t comply with the new rules.”