Talktalk Fined For Breaching Consumer Rules

James Walsh, Senior Associate, Telecoms Team and Charlotte Walker-Osborn Head of TMT Sector

What? Ofcom has imposed a £3m fine on TalkTalk and Tiscali UK for incorrectly billing tens of thousands of customers for services that they did not receive.

So what? The penalty represents a prelude to a harder stance from the regulator.

Ofcom identified that between 1 January and 1 November 2010, TalkTalk incorrectly billed 62,000 customers. Ofcom consequently issued the company with a notification to rectify its customer management records by 2 December 2010. Whilst TalkTalk made progress in correcting its processes, a subsequent 3,000 customers were still incorrectly billed between 2 December 2010 and 4 March 2011. Under section 96 Communications Act 2003, Ofcom has the power to impose a financial penalty constituting up to 10 per cent of turnover where an entity is in breach.