Ofcom ends Phones 4U investigation

Ofcom has closed its 6-month investigation into the activities of Phones 4U after persuading the retailer to change its handset return policy, its chequeback terms and its sales practices. It says Phones 4U had been acting in a way that breached aspects of the Sale of Goods Act 1979, the Unfair Contract Terms Act 1977, the Unfair Terms in Consumer Contracts Regulations 1999 and the Control of Misleading Advertising Regulations 1988. [Ofcom bulletin]

Ofcom investigates Phones 4U

Telecomms regulator Ofcom has opened an investigation into Phones 4U to ascertain whether or not the company has breached any relevant consumer protection legislation, infringed any law or harmed the interests of consumers. It says it's started investigating after having received a large number of complaints via the Consumer Direct advice service and to Ofcom’s Advisory Team about a range of issues including mis-selling.

Ofcom proposes clampdown on mobile mis-selling

Ofcom is proposing a change to the law surrounding mis-selling mobile phone services. Its proposal covers customers being given incorrect information, 'slamming' (where consumers are committed to a new contract without their consent) and cashback schemes.

The new rules will require mobile service providers:

• not to engage in dishonest, misleading or deceptive conduct and to ensure that those selling their products and services do not mis-sell;
• to make sure the customer is authorised to, and intends to, enter into a contract;
• to make sure customers get the information they need when they buy the product;
• to ensure that the terms and conditions of all sales incentives offered by their retailers are not unreasonable; and
• to carry out due diligence and checks to ensure the soundness of their retailers.

Ofcom says these new rules - if implemented - will let them formally investigate complaints and impose sanctions for breaches of the regulations. They'd like feedback on their proposal by 29 April 2008.