Ofcom finds Phones 4U in breach of consumer protection laws

by Fiona Ramsay, Marketing 10-Nov-08, 12:40

LONDON - Mobile retailer Phones 4U has been forced to commit to legally-binding undertakings that it will not mislead customers with underhand mobile phone and contract sales.

Ofcom has received undertakings from Phones 4U committing it to changing a number of its practices after a six-month, joint Ofcom-Staffordshire Trading Standards investigation found that Phones 4U had breached several consumer protection laws.

Phones 4u was not providing customers with a refund when they returned faulty handsets within a reasonable period of time, according to the investigation.

The retailer also included unfair terms in its handset return policy and made 'misleading, false or deceptive representations or omissions' to consumers about network coverage and what was included in its mobile phone plan.

Phones 4U has since changed its handset return policy and improved sales practices.

Ofcom, in conjunction with Staffordshire Trading Standards, will monitor complaints in relation to Phones 4U to make sure that it complies with the undertakings.

If Phones 4U breaches the undertakings then Ofcom can apply to the High Court or County Court for an Enforcement Order to stop the practices.