Phone Retailer Agrees to Stop Breaking Consumer Protection Laws

UK telecoms regulator, Ofcom says that it has received legally-binding undertakings from the aggressive phone retailer, Phones 4U committing them to change a number of their practices which will stop them from breaching consumer protection laws relating to the sale of mobile handsets and contracts.

A six month joint Ofcom-Staffordshire Trading Standards investigation found that Phones 4U had breached several consumer protection laws. Some of the examples cited included not offering refunds for faulty phones when appropriate and the use of unfair terms in their contracts and cash-back offers.

Ofcom says that Phones 4U cooperated fully during the investigation leading to a substantial reduction in complaints. In addition, Phones 4U implemented changes to its staff training procedures and operations which enabled Ofcom to swiftly complete its investigation.

If Phones 4U breaches the undertakings then Ofcom can apply to the High Court or County Court for an Enforcement Order to stop it engaging in a particular practice (after giving them an opportunity to respond).

Phones 4u is owned by the US based venture capitalists Providence Equity Partners. Before the sale the firm was part of the The Caudwell Group, which was sold for £1.46 billion in August 2006.

On the web: Phones 4U

Posted to the site on 10th November 2008