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Watchdog bites over breaches of consumer law
Phones 4U has agreed to stop a number of practices that were breaching consumer protection laws.
Earlier this year communications regulator Ofcom published a range of proposals to clamp down on mobile mis-selling.
Following consumer complaints about the way
Phones
4U was trading, Ofcom and Staffordshire Trading Standards launched
a
six-month investigation.
It was found that the retailer was breaching a number of laws relating to the
sale of mobile handsets and contracts, including the Sale of Goods Act and
Unfair Terms and Conditions of Contract regulations.
Customers were refused a refund for faulty phones returned within a reasonable time and Phones 4U was also including unfair terms in its handset returns policy and 'chequeback' schemes.
The company was found to be making misleading, false or deceptive representations or omissions to consumers about matters such as network coverage in particular areas, or what was included in their mobile phone plan. This is a breach of the new Consumer Protection Rules.
Ofcom has now received legally binding undertakings from Phones 4U that it will cease these practices. Ofcom said Phones 4U had cooperated fully during the investigation leading to a substantial reduction in complaints.
In addition, Phones 4U implemented changes to its staff training procedures and operations.
However, Ofcom, in conjunction with Staffordshire Trading Standards, will continue to monitor complaints in relation to Phones 4U to make sure that it complies with the undertakings.
If the retailer breaches the undertakings, then Ofcom can apply to the High Court or a county court for an enforcement order to stop it engaging in a particular practice (after giving the company an opportunity to respond).
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RIP OFF MERCHANTS
I HAVE JUST BEEN INTO STORE AS MY PHONE IS BROKE BUT NO REPLACEMENT WAS OFFERED INSTEAD THEY WANT TO LEAVE ME WITHOUT A PHONE AND COURIER THIS TO REPAIRS WHICH WILL TAKE 7 DAYS I CANNOT BE WITHOUT MY PHONE THIS IS MY WORK AND ON PHONING NOTHING DADA NOWT WHAT AM I PAYINg £10 A MONTH INSURANCE FOR NOTHING DADA NOWT A COMPLETE RIF OFF AND THIS PHONE COSTS ME £50. A MONTH
Posted by Shaun lewin, 07 Dec 2008
Phones4U mis-sold me a contract
Does anyone know if you sue Phone4U retrospectively now that Ofcom has found them to be mis-selling contracts?
Posted by DD, 18 Dec 2008
misold phone contract - breaching of sales of goods act
We were told we had 600 free minutes, 3000 free texts and free usage of MSN throughout the month, however, more importantly we were never informed about receiving the inclusive minutes and text on pro-rata, creating a huge bill at no fault of our own. We were given some advice,however, that as this was a gift to my daughter for Christmas, it would be a good idea to ony tell her that she had 500 minutes free available to her on a monthly basis, and that way she would never exceed this. We have now come to learn that within the first week of having this phone contract, we have ran up a bill of around £200 (after the VAT and the montly payment plan has been added). As much as I was surprised my daughter had managed to use this she had stayed within the 600 free minutes that she thought she had. I trust you can appreciate my concern in this matter, but I feel I have a duty to report this, as Ofcom are further purusing investigations.
Posted by Laura Tranter, 08 Jan 2009
phones4u repair practices
I took back a faulty phone to the shop after 4 weeks as it stopped working. I was told that they only give you a new phone within 20 days of the date of purchase, so my phone had to go into repair. I have now been told that it will not be replaced or repaired as it has been water-damaged, there are sign of corrosion. There is no way this phone was damaged by me, it never came into contact with water whilst in my possession (not even with my wet hair, as it was suggested to me by phones4u's customer service). I don't kow if the damage started before I baught it, or if it occurred after i left the phone with phones4u for repairs. I have lodged a complaint, but must have a second opinion, which mean paying more money. All that for a £40 phone. I will never again use this company and will make sure that their bad practice is publicised.
Posted by pascale gordon, 22 Jan 2009