Ofcom clamps down on LLU operators

Ofcom has extended the existing rules protecting consumers from mis-selling

Ofcom has extended the existing rules protecting consumers from the mis-selling of fixed-line voice call services to cover local loop unbundling (LLU) providers that offer voice and broadband services.

The UK telecoms watchdog defines mis-selling as inappropriate sales and marketing activities including 'slamming', where customers can be switched from one company to another without their knowledge and consent.

Since May 2005 a new General Condition of Entitlement (GC 14.5) has required providers of fixed-line voice call services to establish, then comply with, a code of practice for sales and marketing in accordance with Ofcom's guidelines.

Since the regulations came into effect in 2005, Ofcom has opened investigations into Economy Calls, FreeCall, Lo-Rate Telecom, Orb Communications, Platinum Telecom, Post Office, Scottish and Southern Energy, Tesco, Unicom, Universal Telecom and XLN Telecom.

From January to March 2007 alone the watchdog reported receiving some 1,200 complaints related to mis-selling. Following public consultation, Ofcom today announced its intention to extend these rules after May 2007.

"Ofcom has also extended GC 14.5 to include sales and marketing of full LLU services. LLU refers to telephone lines running between homes or businesses and the local exchange that are not connected by BT," the organisation stated.

"The process for switching to, from and between full LLU providers is identical to that of fixed-line voice call services."

Separately, Ofcom said that it is carrying out a review of migrations, switching and mis-selling across all telecoms services, including broadband, mobile and cable.

Ed Richards, chief executive of Ofcom, said: "Mis-selling causes problems for consumers. We want competition and choice to continue to grow, and we want consumers to benefit from these changes.

"Consumers need to be able to shop around with confidence. Extending these rules and our enforcement activity will protect consumers from inappropriate sales and marketing techniques."