The dealer has been accused of slamming, failure to retain records and unreasonable contracts
Ofcom has today (August 1) announced it has “reasonable grounds” to believe True Telecom may have breached consumer protection rules.
Between October 8, 2015 and October 26, 2016 the regulatory body suspects the dealer to engage in slamming, failure to record consent and placing unreasonable contracts on customers.
Slamming is when a service is migrated to another provider without customer consent or knowledge. Contracts penned by customers may not have been recorded or retained, and contracts were being signed for over 24 months with terms requiring early termination charges.
If found guilty the dealer could face a fine of 10 per cent of annual revenue.
In October CEO Stuart Griffiths (right) told Mobile News he did not expect “any sort of fine” and were more than “open to work with Ofcom”.
Closing the matter
Today Griffiths told Mobile News: “Due to the ongoing nature of the investigation, we feel it would be inappropriate to comment with specific details at this time.
“We had verbal correspondence from Ofcom and the conversation was more based around the fact they had concluded their initial review, they hadn’t yet reached a decision or outcome and that we have the opportunity to meet and discuss their findings to which we immediately accepted this invitation.
“We can confirm however, we have been working extremely closely with the telecommunications Ombudsmen service and have seen a direct reduction in any cases being raised for dispute resolution.
“We continue to work closely with the Ombudsmen and welcome the opportunity to meet with Ofcom in the coming weeks to close the matter.”
Ofcom told Mobile News the dealer now has “opportunity to make representations” to take the investigation forward which is only midway. A spokesperson said: “Ofcom has reasonable grounds for believing that True Telecom has breached our rules designed to protect consumers against mis-selling, and we take this very seriously.
“True Telecom now has an opportunity to make representations to us on the matters raised in our investigation. We will consider these before reaching our final decision.”