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Broadband mis-selling 'targeted' | Broadband mis-selling 'targeted' |
(about 11 hours later) | |
Telecoms regulator Ofcom has vowed to crack down on mis-selling by phone and broadband providers. | Telecoms regulator Ofcom has vowed to crack down on mis-selling by phone and broadband providers. |
Ofcom said it was prepared to use large sums to fine firms which broke industry rules, to ensure public confidence in the sector was maintained. | |
Competition has intensified in the broadband and telecoms markets with the likes of Carphone Warehouse, BSkyB, BT, Orange and Vodafone vying for business. | Competition has intensified in the broadband and telecoms markets with the likes of Carphone Warehouse, BSkyB, BT, Orange and Vodafone vying for business. |
Rules making it easier for people to change supplier come in next year. | Rules making it easier for people to change supplier come in next year. |
Level-playing field | Level-playing field |
Firms flouting these rules, which come into force in February, and other regulations will potentially face a maximum penalty of up to 10% of their turnover. | Firms flouting these rules, which come into force in February, and other regulations will potentially face a maximum penalty of up to 10% of their turnover. |
There is a threat that if there is mis-selling, then confidence in the market will suffer and that is not acceptable Ofcom spokesman | There is a threat that if there is mis-selling, then confidence in the market will suffer and that is not acceptable Ofcom spokesman |
Ofcom stressed that the broadband market was generally working well for consumers but added that it had a duty to deal with a "minority" of cases where people were being short-changed. | Ofcom stressed that the broadband market was generally working well for consumers but added that it had a duty to deal with a "minority" of cases where people were being short-changed. |
"You will see a crackdown on rogue operators that are trying to implement scams and those companies dealing in unfair methods of competition," an Ofcom spokesman said. | "You will see a crackdown on rogue operators that are trying to implement scams and those companies dealing in unfair methods of competition," an Ofcom spokesman said. |
"There is a threat that if there is mis-selling, then confidence in the market will suffer and that is not acceptable." | "There is a threat that if there is mis-selling, then confidence in the market will suffer and that is not acceptable." |
The regulator insisted that it would not investigate companies for the sake of it but wanted to ensure a "level-playing field". | The regulator insisted that it would not investigate companies for the sake of it but wanted to ensure a "level-playing field". |
It is concerned that some broadband customers are being left in limbo when they change suppliers since firms are failing to provide codes enabling them to transfer smoothly. | It is concerned that some broadband customers are being left in limbo when they change suppliers since firms are failing to provide codes enabling them to transfer smoothly. |
Ofcom is increasing penalties for other forms of mis-selling with fines for firms guilty of making silent phone calls set to rise to £50,000 next year. | Ofcom is increasing penalties for other forms of mis-selling with fines for firms guilty of making silent phone calls set to rise to £50,000 next year. |
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