Ofcom
Ofcom has extended the existing rules protecting consumers from mis-selling

Ofcom clamps down on LLU operators

Mis-selling rules extended to unbundled operators

Written by Robert Jaques

Ofcom has extended the existing rules protecting consumers from the mis-selling of fixed-line voice call services to cover local loop unbundling (LLU) providers that offer voice and broadband services.

The UK telecoms watchdog defines mis-selling as inappropriate sales and marketing activities including 'slamming', where customers can be switched from one company to another without their knowledge and consent.

Since May 2005 a new General Condition of Entitlement (GC 14.5) has required providers of fixed-line voice call services to establish, then comply with, a code of practice for sales and marketing in accordance with Ofcom's guidelines.

Since the regulations came into effect in 2005, Ofcom has opened investigations into Economy Calls, FreeCall, Lo-Rate Telecom, Orb Communications, Platinum Telecom, Post Office, Scottish and Southern Energy, Tesco, Unicom, Universal Telecom and XLN Telecom.

From January to March 2007 alone the watchdog reported receiving some 1,200 complaints related to mis-selling. Following public consultation, Ofcom today announced its intention to extend these rules after May 2007.

"Ofcom has also extended GC 14.5 to include sales and marketing of full LLU services. LLU refers to telephone lines running between homes or businesses and the local exchange that are not connected by BT," the organisation stated.

"The process for switching to, from and between full LLU providers is identical to that of fixed-line voice call services."

Separately, Ofcom said that it is carrying out a review of migrations, switching and mis-selling across all telecoms services, including broadband, mobile and cable.

Ed Richards, chief executive of Ofcom, said: "Mis-selling causes problems for consumers. We want competition and choice to continue to grow, and we want consumers to benefit from these changes.

"Consumers need to be able to shop around with confidence. Extending these rules and our enforcement activity will protect consumers from inappropriate sales and marketing techniques."

See also:

reader comments

related articles

Ofcom

Ofcom scrutinises number porting

Regulator may call for a central database of numbers 05 Apr 2007

 

Ofcom rules on broadband switching

Providers will have to hand over customer details promptly 13 Dec 2006

Ofcom legalises iPod radio broadcasts

Watchdog bows to consumer demand 24 Nov 2006

Ofcom opens premium rate phone-in probe

Regulator to investigate breach in trust between broadcasters and viewers 26 Mar 2007

Ofcom lays down the law on VoIP services

Telecoms regulator worried about emergency calls and power cuts 02 Apr 2007

Ofcom to investigate fixed-line fraud

'Slamming' problem back again 31 Mar 2008

Ofcom puts broadband speeds at heart of 2009 plans

Communications watchdog lays out key priorities for next year 04 Dec 2008

Ofcom targets mobile phone industry dishonesty

Regulator acts after sharp rise in complaints about misleading sales and marketing practices 18 Mar 2008

latest news

Ballmer highlights aims for New Year

Ballmer announces Windows 7 beta and future alliances designed to improve information sharing 08 Jan 2009

Active Storage completes UK Jigsaw

Jigsaw unveiled as Raid vendor's first non-US Platinum partner as it launches in Europe 08 Jan 2009

Dell quits Irish production

Vendor to slash 1,900 jobs in Limerick as it migrates assembly for EMEA customers to Poland 08 Jan 2009

poll

Challenging times ahead?

Challenging times ahead?

Do you think there will be a lot of channel job cuts in 2009?

Previous poll results

Paul Anderson, Trend Micro

Vendor Q&A: Paul Anderson, Trend Micro

During this Q&A session Paul Anderson, UK country manager of Trend Micro talks about the changing threat landscape and how Trend is working with resellers in 2009

Sara Yirrell and Rick Wallis

Vendor Q&A: Rick Wallis, NEC Computers

In this exclusive vendor Q&A, Rick Wallis, UK sales director at NEC Computers talks to CRN editor Sara Yirrell about his firm’s plans for the channel.

events

Channel Expo 2009 logo

Channel Expo 2009

The UK's top reseller exhibition will return to the NEC on 20 May 2009

CRN Fight Night 2009

The channel's only white-collar boxing event is back

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

White papers

Search white papers

Top categories

Primary Navigation