Lycatel agrees to clarify advertising

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Lycatel to clarify terms and conditions after Ofcom investigation into consumer complaints

International calling card company Lycatel has agreed to clarify a number of points in its advertising and terms and conditions after regulator Ofcom launched an investigation into consumer complaints earlier this year.

Ofcom’s investigation found that Lycatel’s advertisement of its international calling cards potentially breached the Consumer Protection from Unfair Trading Regulations 2008 and the Unfair Terms in Consumer Contracts Regulations 1999.

As a result, Lycatel has agreed to clearly state the headline number of minutes consumers will receive and that minutes are reduced by certain fees and/or charges in a manner which is clear and understandable. It will also provide consumers with material information in a manner which is clear, intelligible and unambiguous, such as on connection fees, maintenance charges and post call fees; ensure that material information, such as terms and conditions, is displayed in clearly legible font; and not use the post call fee term in its current form.

It was originally reported the Lycatel could be issued a large fine as part of the investigation, but no fine has been levied.

Lycatel has undertaken to replace its existing advertisements in the market place by the beginning of December 2010. Ofcom will monitor compliance with the undertaking.

Ofcom will also be monitoring other suppliers of international calling cards to ensure that consumers have clear and accurate information when purchasing calling cards.

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