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Phones4U facing mis-selling probe | Phones4U facing mis-selling probe |
(about 3 hours later) | |
Telecoms regulator Ofcom is to spend up to six months investigating Phones4U over alleged mis-selling of mobile phone deals. | Telecoms regulator Ofcom is to spend up to six months investigating Phones4U over alleged mis-selling of mobile phone deals. |
The retailer is the first in the UK to face an inquiry by Ofcom despite the issue being a common consumer gripe. | The retailer is the first in the UK to face an inquiry by Ofcom despite the issue being a common consumer gripe. |
The regulator said it had received a large number of complaints about alleged mis-selling and other issues by the independent retailer. | The regulator said it had received a large number of complaints about alleged mis-selling and other issues by the independent retailer. |
Phones4U said it would co-operate fully with Ofcom and act if required. | Phones4U said it would co-operate fully with Ofcom and act if required. |
Investigation | Investigation |
"Ofcom's investigation will consider whether Phones4U has engaged in conduct which infringes any relevant law and harms the collective interests of consumers," the regulator said in a statement. | "Ofcom's investigation will consider whether Phones4U has engaged in conduct which infringes any relevant law and harms the collective interests of consumers," the regulator said in a statement. |
It is thought the probe could involve looking into cash-back deals, prompted by complaints from customers to Ofcom and the advice centre Consumer Direct. | It is thought the probe could involve looking into cash-back deals, prompted by complaints from customers to Ofcom and the advice centre Consumer Direct. |
A spokeswoman for Phones4U said it intended to co-operate fully with Ofcom and was already talking to them. | A spokeswoman for Phones4U said it intended to co-operate fully with Ofcom and was already talking to them. |
"Phones4U prides itself in maintaining the highest standards of customer service. If any instances where this has not been the case are brought to light, as a result of this inquiry, we will act accordingly," she said. | "Phones4U prides itself in maintaining the highest standards of customer service. If any instances where this has not been the case are brought to light, as a result of this inquiry, we will act accordingly," she said. |
Continuing review | Continuing review |
In March, Ofcom said it would crack down on the mis-selling of mobile phones after the failure of a voluntary code of practice across the industry. | In March, Ofcom said it would crack down on the mis-selling of mobile phones after the failure of a voluntary code of practice across the industry. |
It said the number of complaints generally had risen from 460 a month to 700 since the voluntary code came in last summer. | It said the number of complaints generally had risen from 460 a month to 700 since the voluntary code came in last summer. |
It is drawing up a compulsory code of practice aimed at tackling cash-back offers which fail to pay out and cases of false information offered when buying a contract. | It is drawing up a compulsory code of practice aimed at tackling cash-back offers which fail to pay out and cases of false information offered when buying a contract. |
Firms that do not comply with the rules could be fined up to 10% of their turnover. | |
Ofcom is consulting on the plans which it wants in place by the summer. | Ofcom is consulting on the plans which it wants in place by the summer. |
Consumer group Which? has previously called for mobile phone cash-back offers to be banned, unless the cash-back comes automatically. | Consumer group Which? has previously called for mobile phone cash-back offers to be banned, unless the cash-back comes automatically. |
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