Ofcom is particularly concerned about "slamming" - where
consumers are switched from one supplier to another without their
knowledge and consent, usually after a cold-call from the new
supplier.
Six weeks from today, all fixed-line service providers will be
obliged to draw up mandatory Codes of Practice, consistent with
published guidelines, and comply with them in all sales and
marketing activities, Ofcom announced.
The obligation will be reviewed after two years and removed if
the regulator finds that sales and marketing abuses have
decreased.
Ofcom confirmed that it will investigate allegations of
mis-selling on a case-by-case basis, and that if companies breach
their obligations the regulator may require them to give written
undertakings as to their sales and marketing practices.
Ofcom has the power to impose fines of up to 10% of turnover
in the event of continued breaches.
Ofcom Chief Executive Stephen Carter said: "Effective
competitive markets need well-informed customers making positive
decisions to switch their business from one supplier to
another".
"These measures should help support progress towards the
appropriate levels of clarity and transparency whilst the market
continues to mature," he added.
