Britain’s Biggest Telecom Operators to Face £3.3 Billion Class Action Lawsuit Over Alleged Overcharging
Britain’s largest mobile phone operators, including Vodafone, EE, Three, and O2, are set to face a class action lawsuit seeking damages of nearly £3.3 billion ($4.1 billion). The legal action, brought by law firm Charles Lyndon and consumers’ rights advisor Justin Gutmann, accuses the telecom companies of imposing unfair loyalty penalties on existing customers, resulting in higher bills compared to new customers for similar services.
The lawsuit centers on contracts where customers purchased a phone along with airtime services. It alleges that the operators failed to reduce the charges once the minimum contract term expired, despite customers having already paid off the cost of the phone. The law firm claims that up to 28.2 million contracts were affected, leading to the sought-after damages of £3.285 billion.
Consumers who qualify for the class action are automatically included in the claim unless they choose to opt out. If successful, individual consumers who bought contracts comprising mobile phones and services such as data, minutes, and calls could receive up to £1,823 as compensation.
Gutmann expressed his motivation for launching the class action, stating, I believe these four mobile phone companies have systematically exploited millions of loyal customers across the UK through loyalty penalties, taking over £3 billion out of the pockets of hard-working people and their families. He further emphasized the need to hold the companies accountable, particularly in light of financial crises and the current cost-of-living concerns.
In response, EE expressed strong disagreement with the claim and stated that they were awaiting additional information. Vodafone stated that they have yet to review the details thoroughly, preventing their legal team from assessing the claims properly. O2, however, highlighted their introduction of split contracts a decade ago, which automatically reduced customers’ bills once their handset was paid off. Three has yet to comment on the matter.
The class action has been filed with the Competition Appeal Tribunal in London, and with millions of affected consumers potentially involved, the outcome could have significant implications for the telecom industry. As the case unfolds, it remains to be seen how the accused operators will address the allegations and defend their practices.
Overall, this landmark class action represents a significant challenge to the telecom giants accused of overcharging loyal customers. The outcome could potentially reshape the industry’s approach to pricing strategies and reinforce the importance of fair treatment for consumers across the UK.
