Ofcom Logo, Image Credit media.ofcom.org.uk
Following a lengthy investigation into trading practices at Unicom (Universal Utilities LTD), telecoms regulator Ofcom has decided to fine the company £200,000. Ofcom found that Unicom were in violation of their General Condition 24.3(a), which states that when selling landline telephone services, providers must not engage in dishonest or deceptive conduct. In addition to the fine, the company must take a number of steps to compensate customers and make changes to company policy and sales material to assure they follow Ofcom regulations in the future.
Claudio Pollack, Ofcom’s Consumer and Content Group Director, stated: “Small businesses in the UK increasingly rely on high-quality communications services. Service interruptions and unexpected costs can cause a real concern for these customers. Ofcom does not accept misleading practices and we will take action against companies that break the rules.”
The investigation into Unicom opened in March 2014 following years of complaints from small businesses across the UK, some dating back to 2008, complaining of misselling and poor business practices. The investigation found that during the period 1st March 2013 to 8th July 2014, Unicom used sales practices that gave businesses a misleading impression about costs they would face, and gave incorrect information regarding early termination charges and the effects of changing company landline services on their broadband services.
In response to the decision, a spokesperson for Unicom stated: “We pride ourselves on our level of service to our small business customers. We have been constructively engaged with Ofcom on a number of points and we are pleased that there were no adverse findings relating to three of the four areas listed in the original investigation notice. We are disappointed however that Ofcom has reached its conclusion on the one remaining area. Recognising that we fell short of expectations for a limited number of landline customers between 1st March 2013 and 8th July 2014, steps have already been taken to ensure that this does not happen again.”
This investigation follows a previous investigation into Unicom from 2006, where BT alleged that Unicom used customer information improperly to prevent customers switching to different communication providers.
Unicom has been given 20 working days to deliver payment.
As always, Midland Networks supports the decision of Ofcom. Having consistently worked to regulations, Midland Networks strive to provide honest and reliable service to customers across all of our available services, and are proud that Ofcom have never received a single complaint about our products or services.