Sony Pixel Power calrec Sony

EE and Virgin Media fined for overcharging customers

16/11/2018

EE and Virgin Media fined for overcharging customers Add to Your Pages

16 November 2018

Ofcom fines EE £6.3m and Virgin Media £7m for breaking consumer protection rules

Both levied excessive charges to customers who ended their contracts early

Ofcom has today fined EE and Virgin Media a combined total of £13.3m for overcharging phone and broadband customers who wished to leave their contracts early.

The penalties are the result of investigations into EE's and Virgin Media's early-exit charges.

Phone and broadband companies can charge customers who decide not to see out the minimum term of their contracts.[1] But under Ofcom rules, those charges must be made clear to customers, and must not make switching to another provider too costly. [2]

Our investigation found that both EE and Virgin Media failed to comply with these rules, because:

around 400,000 EE customers who ended their contracts early were over-billed, and customers ended up over-paying up to £4.3m;

almost 82,000 Virgin Media customers were overcharged a total of just under £2.8m; and

both companies failed to make sufficiently clear the charges customers would have to pay if they ended their contract early.

Gaucho Rasmussen, Ofcom's Director of Investigations and Enforcement, said: EE and Virgin Media broke our rules by overcharging people who ended their contracts early. Those people were left out of pocket, and the charges amounted to millions of pounds.

That is unacceptable. These fines send a clear message to all phone and broadband firms that they must play by the rules, in the interests of their customers.

What happened with EEOfcom's investigation found that, over a six-year period, terms applying to EE's discount contracts' did not clearly set out the charges its mobile customers would have to pay if they ended their contracts early. We also found that up to 15 million discount contracts for EE's mobile, landline and broadband customers required them to pay excessive early exit charges.[3]

Of those customers, 400,000 decided to leave their contracts early during the relevant period. They were collectively over-billed by up to £13.5m in early exit charges.

This was because EE mis-calculated early-exit charges for these customers based on the non-discounted monthly retail price. Affected customers were therefore allowed to pay a lower price while they remained EE customers, but were treated as if they were paying another, higher price if they wanted to leave.

Not all affected customers paid the excessive charges, as some were subsequently waived by EE. Taking this into account, EE estimates that its discount customers overpaid by up to £4.3m. These excessive charges disincentivised EE customers from switching to another provider, which is against Ofcom rules.

EE fine and customer refundsIn light of these findings, Ofcom has fined EE £6,300,000 for its failings. The figure incorporates a 30% reduction to reflect that EE admitted the breaches and agreed to settle the case.

As part of EE's co-operation with our investigation, EE agreed to change its terms and significantly reduce its charges. EE has refunded just over £2.7m to the affected customers it has been able to identify, although this means up to £1.6m cannot be refunded. Ofcom took these facts into account when setting the financial penalty.

As a result of our investigation, EE also volunteered to conduct an in-depth review of its processes and systems to help secure its future compliance with our rules, which we welcome.

What happened with Virgin MediaOur investigation found that, for almost a year, Virgin Media levied early-exit charges that were higher than customers had agreed to when signing up to their residential contracts.[4]

The company overcharged almost 82,000 customers who left their contracts early, by a total of just under £2.8m an average of £34 per person. Some 6,800 customers were overcharged by more than £100.

Due to Virgin Media setting its early-exit charges too high, its customers were disincentivised from switching to another provider, which is against Ofcom's rules.

Our investigation also discovered that Virgin Media failed to publish clear and up-to-date information on its website to help customers understand its early-exit charges.

Virgin Media fine and customer refundsOfcom has fined Virgin Media £7,000,000 for its failings. We have also fined the company an additional £25,000 for providing incomplete information in response to a statutory information request.[5]

Virgin Media has reimbursed or made donations to charity in respect of 99.8% of affected customers and the company is continuing its efforts to trace remaining customers in order to refund them. In the event it is unable to trace these customers, it will donate the remaining refunds to charity.

As a result of our investigation, Virgin Media has significantly reduced the level of its early-exit charges by an average of 30%, and up to 50% in some cases. Virgin Media now applies an additional reduction to the early-exit charges paid by customers who end their contract after moving house.

The company has also made changes to its procedures and contract terms applicable to home movers[6]. Virgin Media has agreed to:

make it clearer in contract terms, on its website and in conversations with customers, that Virgin Media's network does not cover the whole of the UK; and that, if a customer moves home to an area outside of its network, they may be liable to pay an early-exit charge;

promote 30-day rolling contracts as an alternative option for customers who are aware they may need to move house in the near future; and

update its training processes and customer service agents' scripts and materials to ensure that customers who indicate they may need to move home are provided with correct information.

In a
LINK: https://www.ofcom.org.uk/__search/s/redirect?collection=web&url=https:...
See more stories from ofcom

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

09/11/2026

Sonys Shotgun Mic Deployed in Drifter' Shoot

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Fox Closes Roku Acquisition

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

09/11/2026

Indianapolis TV Stations Return to DirecTV After Lengthy Absence

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Vizrt Completes Proof-of-Concept Integration With Story Object Model

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Broadcast Dominated Midterms Coverage

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Berklee's Singers Showcase Celebrates Whitney Houston's Music and Her Gospel Roots

Berklee's Singers Showcase Celebrates Whitney Houston's Music and Her Go...

09/11/2026

NVIDIA Announces New Planned Investments in Korean Startups at the MSIT-NVIDIA AI Startup Partnership Forum

Korea's Ministry of Science and ICT and NVIDIA hosted the MSIT-NVIDIA AI Sta...

09/11/2026

Practice Makes Precise: At CoRL, NVIDIA and Partners Reveal How Robots Rehearse Delicate Work in Simulation

Simulation, which has long been the proving ground for robots learning to walk, ...

08/11/2026

Acon Digital release Restoration Suite 3

Updated modules & new Analyze function Acon Digital's all-in-one restoration plug-in has just been updated, and now boasts an Analyze button that allows...

08/11/2026

AnalogX launch Genesis

Run analogue gear emulations on your GPU AnalogX have released a new GPU-powered mixing ecosystem that's been designed to change how users handle analog...

08/11/2026

COW Jobs: Set and Production Design Expert - Remote

COW Jobs: Set and Production Design Expert - Remote Brie Clayton November 8, 2026 0 Comments Set and Production Design Expert (Remote, worldwide) No...

08/11/2026

NVIDIA Dynamo Recipes Bring Korea's Leading Open Models to Production

NVIDIA is releasing Dynamo-optimized deployment recipes for Korea's leading open models: A.X K2 from SK Telecom, K-EXAONE 2.0 from LG AI Research, Solar Ope...

08/11/2026

From Chips to Skills, NVIDIA and Korea Expand Sovereign AI Collaboration

NVIDIA and Korea's Ministry of Science and ICT (MSIT) are expanding their collaboration across the country's sovereign AI ecosystem, from AI semiconduct...

08/11/2026

Korea's AI Ecosystem Advances and Secures Agentic AI With NVIDIA

As AI agents take on more work, they need capable open models and security that advances alongside them. Hyundai Motor Group is exploring NVIDIA NemoClaw bluep...

08/11/2026

Korea Advances Physical AI Across Industries With NVIDIA

Tapping into the country's strengths in manufacturing and engineering, NVIDIA is helping advance Korea's physical AI ecosystem. The country's indu...

07/11/2026

Tracktion Waveform Free 14.1 now available

Mix Analysis, improved Render window & new bundled instrument The free version of Tracktion's DAW software has recently received an update that introduc...

07/11/2026

NFVF CALL FOR MARKET READINESS PROGRAMME FOR SOUTH AFRICAN GAMING STUDIOS

The National Film and Video Foundation (NFVF) is a statutory body established to promote and develop the South African film and video industry, including animat...

07/11/2026

Nielsen: 31.2 Million Viewers Watch 2026 U.S. Midterm Election Coverage

NEW YORK - November 5, 2026 - An estimated 31.2 million people watched primetime coverage of the 2026 U.S. midterm elections on Tuesday, November 3, according t...

07/11/2026

RCI Custom Selects Neutrik as Primary Source for Connectors

Share Copy link Facebook X Linkedin Bluesky Email...

07/11/2026

Audio Engineer Rachel Saldivar Deploys Sony Shotgun Mic for Drifter' Shoot

Share Copy link Facebook X Linkedin Bluesky Email...

07/11/2026

COW Jobs: Production Manager - Las Cruces, NM

COW Jobs: Production Manager - Las Cruces, NM Brie Clayton November 6, 2026 0 Comments Production Manager November 5, 2026COW Jobs: Faith-Based UGC ...

06/11/2026

Gravity Medias JockeyCam at Center of Melbourne Cup Carnival Busy Week of Horse Racing

It's been a big week in Australia horse racing as the Victoria Racing Club (...

06/11/2026

PBR Expands Production of Teams Championship With Third Mobile Unit, More Cameras

Additional gear includes a second, outside drone; a second slo-mo unit; and a wi...

06/11/2026

University of Alabama Installs Daktronics Displays at Coleman Coliseum

The University of Alabama has installed a new Daktronics display system at Coleman Coliseum in Tuscaloosa. It includes a 360-degree centerhung with four underbe...

06/11/2026

NEP Adds IP-Based Flypack Production Kits in the U.S.

NEP Americas, part of NEP Group, has expanded its remote production offering with new IP-based flypack production kits deployed from the U.S. and available to c...

06/11/2026

Telestream Appoints Joseph Hopkins Chief Revenue Officer

Telestream has appointed Joseph Hopkins Chief Revenue Officer. He has more than two decades of executive experience in media technology. In the role, he will fo...

06/11/2026

SVG GameDay, Ep. 38: Texas Rangers Chris DeRuyscher - Livin the Life at Globe Life Field

In-venue and creative video staffers at the professional and collegiate level ha...

06/11/2026

Soaring in Stamford: Major League Soccer's Seth Bacon Details the Growth of MLS Productions

It's been nearly two years since MLS Productions made the move to WWE's ...

06/11/2026

With Decision Day on Deck, MLS Productions' Stamford Hub Prepares for 15 Matches in Five Hours

All 30 clubs take the field Saturday, and every camera, graphic, and feed runs t...

06/11/2026

GForce launch Oberheim Matrix-12

Latest official Oberheim collaboration arrives Following on from the launch of their new and improved website, GForce Software have released their latest of...

06/11/2026

Avid introduce Pro Tools 2026.11

Pro Tools Extensions, MPE support & more Avid have just released Pro Tools 2026.11, which introduces built-in stem separation, a new Extensions format that ...

06/11/2026

Heritage Audio's i73 Pro gains NAM A2 support

Interface range can now run captures on internal DSP Heritage Audio have just launched a firmware update that makes it possible for their i73 Pro audio inte...

06/11/2026

SMALL TOWN. BIG DREAMS. ABSOLUTE MAYHEM. The crown is up for grabs in bold new SBS Original, Miss Sultanah

SMALL TOWN. BIG DREAMS. ABSOLUTE MAYHEM. The crown is up for grabs in bold new S...

06/11/2026

FCC Releases More Details on Nationwide EAS Test

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

Pro Tools Adds New AI-Powered Extension for Separating Audio Into Individual Elements

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

Sage Issues Mandatory Security Update for ENDECS

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

CNN Reports Record Setting Viewership Numbers for Midterms Coverage

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

Democratic Senator Sends Warning to FCC Chairman Carr

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

Maxon Expands Creative Possibilities with New Touch and S...

Maxon Expands Creative Possibilities with New Touch and Spatial Experiences in Cinema 4D and ZBrush for Apple Products New capabilities let artists interact wi...

06/11/2026

Big Daddy Kane to Be Inducted Into Berklee's Hip-Hop Hall of Fame

Big Daddy Kane to Be Inducted Into Berklee's Hip-Hop Hall of Fame The Grammy-winning emcee joins an iconic roster of inductees in an event that features s...

06/11/2026

NBC News Wins Midterm Elections Ratings Race

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

LG Ad Solutions Names Abhijit Pol SVP, Product and Engineering

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

Gravity Media's OB Rethink Delivers for Gravel Cycling Championship

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

VITEC to Retire Datapath Brand

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

NEP Americas Adds IP-Based Flypack Kits to Production Lineup

Share Copy link Facebook X Linkedin Bluesky Email...

06/11/2026

Black Friday Deals from Flanders Scientific, Inc - An Atomos Company

Black Friday Deals from Flanders Scientific, Inc - An Atomos Company Brie Clayton November 5, 2026 0 Comments Purchase any FSI monitor between now and...

06/11/2026

COW Jobs: Faith-Based UGC Video Creator - Remote

COW Jobs: Faith-Based UGC Video Creator - Remote Brie Clayton November 5, 2026 0 Comments Faith-Based UGC Video Creator (Remote, Part-Time) November...

06/11/2026

Thats Christmas Sorted: Sky brings entertainment icons to life in all dancing festive campaign

Friday 6 November 2026 That's Christmas Sorted: Sky brings entertainment ic...

06/11/2026

Fox Corporation Completes Acquisition of Roku

Fox Corporation Completes Acquisition of Roku FOX Is Now One of the Leading Streaming Businesses in the U.S., Inclusive of Roku, Tubi and FOX One Roku's...