From The Times:
http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article...November 24, 2007
Thousands hit by phone bill scamsElizabeth Judge
Sales tactics used by mobile phone companies are to be subjected to strict new rules amid widespread evidence that customers are being duped over deals, The Times has learnt.
A surge in complaints about the sales practices of phone companies and their agents, which are being registered by customers at a rate of almost 100 a day, has prompted the telecoms watchdog to plan a crackdown on malpractice.
The complaints concern sales agents working for the mobile companies, who are accused of using aggressive and dubious methods to drum up custom. Victims have found themselves switched over to a rival provider without their consent. Others are encouraged to sign-up to a new package on the basis of a “cash-back” deal, such as a 20 per cent reimbursement on their monthly bill, that never materialises.
The regulator Ofcom is to investigate sales practices adopted by Vodafone, Orange and other main network providers. Last year the companies, which also include O2, T-Mobile and 3, signed up to a voluntary code aimed at curbing such practices.
The problem has still shown no signs of abating. In the past year Consumer Direct, the Government’s consumer helpline, has received more than 25,000 complaints on the subject. Complaints to Ofcom have risen to more than 700 a month.
Consultation on the crackdown will start in the new year. Ed Richards, the chief executive of Ofcom, said that he could have “no choice but to set mandatory standards backed up by the full weight of Ofcom’s powers”.
Related links:
Sales technique with a harsh ringOfcom warns of mobile phone scam
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