Phones 4u is being investigated by Ofcom over allegations of misconduct.
Ofcom said that it decided to investigate the retailer after it received ‘a large number of complaints from consumers, to both Consumer Direct and Ofcom’s Advisory Team, concerning a range of issues, including mis-selling.’
A statement released by Ofcom today said the issue concerns ‘w hether Phones 4u has breached any relevant consumer protection legislation. ’
A Phones 4u spokesman said: ‘Phones 4u confirms that it has received notice from Ofcom that they are launching an enquiry into some aspects of the business. The company intends to cooperate fully with Ofcom in this matter and is in discussion with them.
‘Phones 4u prides itself in maintaining the highest standards of customer service. If any instances where this has not been the case are brought to light, as a result of this enquiry, we will act accordingly.
Phones 4u is being investigated for potential breaches of the Enterprise Act 2002.
If it is found to have breached the act, Ofcom will seek legal undertakings from the retailer that it will not happen again. If it does, the matter will be passed on to the courts.
The initial stage of Ofcom’s investigation is expected to be concluded within six months.
Comments on this article:
scott 14-05-2008 03:16:54
You wouldn't believe the amount of customers who come into our Phones 4u store complaining about being slammed.
Andy 14-05-2008 03:55:13
Before I worked in the industry and knew better, I went in as a customer four years ago but decided not to buy anything. I specifically told them not to retain my details and not to use them for marketing calls. Every February I still get a call from the Lakeside store trying to sell me a contract. If they don't comply with basic DPA requirements, they're unlikely to be complying with anything else are they?
Adam 14-05-2008 07:13:28
I have had customers come into my store saying a Phones 4u worker told them that the only network offering 12 month contracts was Vodafone, and then tying them up into an 18 month Voda contract. The fact that it was an 18 month contract was so small on the agreement it could have easily been confused with a 12 month one.
bigjok 14-05-2008 07:27:17
Finally, Phones 4u and their cowboy antics have been ignored for too long. I agree with Steve - the amount of customers we get saying they were lied to is staggering.
Adam Maskell 14-05-2008 08:46:54
I signed a contract stating I had to pay £27 per month, they told me that I would only pay £18 per month, which i have been paying at the moment. Having read this report, I am concerned whether or not the rate will change from £18 to £27.
Mohammed 14-05-2008 11:02:59
The amount of lying that happens in Phones 4u is massive in terms of contract length and tariff downgrading.This is very good news for all those innocent customers.
Steve 14-05-2008 12:06:27
This should have done ages ago! The amount of customers that come in to complain about Phones 4u lying about products, services and contract lengths is incredible.
Source: Mobile Today