From today, all companies selling fixed-line telecoms services
will be required to comply with Codes of Practice for sales and
marketing and could face fines of up to 10% of turnover for any
infringements – which would include "slamming".
The phone operators were given six weeks to draw up the Codes of
Practice in April, following concerns by UK telecoms regulator
Ofcom over mis-selling in the sector.
Ofcom was particularly concerned about slamming - where
consumers are switched from one supplier to another without their
knowledge and consent, usually after a cold-call from the new
supplier.
The regulator will investigate allegations of mis-selling on a
case-by-case basis, and if companies breach their obligations it
may require them to give written undertakings as to their sales and
marketing practices.
Ofcom also has the power to impose fines of up to 10% of
turnover in the event of continued breaches.
The regulator will review the obligation after two years.
