Ofcom to come down harder on comms firms with proposed new powers

Ofcom could soon receive more power to clamp down on wayward communication service providers that perpetrate scams or mislead phone and broadband customers.

The government is considering changes to the European Electronic Communications Framework that would allow Ofcom to take swifter action when a business breaks consumer protection laws.

The regulator may also be given more power to set service standards, such as a minimum broadband speed to ensure a basic level of access for consumers, and a maximum retail price for certain telephone numbers.

“These revised rules will increase consumer protection and enable Ofcom to take stronger action to deal with companies that do not comply with regulations,” said Ofcom chief executive Ed Richards.

“This is a welcome step forward in ensuring that, if companies do mislead consumers, we are able to offer effective protection,” he said.

The European Electronic Communications Framework intends to deliver more effective competition and better rights for consumers across the all EU member states.

The revisions to the Framework, which include the controversial new rules on cookies, were agreed in late 2009, and member states have until 25 May to put the changes into national law.

A company found to have breached Ofcom’s rules is currently given a month to address the problem, but the new proposals mean that Ofcom could fine a company as soon as an offence is discovered.

The fine could be as hefty as 10 per cent of the company’s turnover, plus £20,000 a day if the problem continues.

Additionally, the maximum penalty for breaches of Ofcom’s information gathering rules could be extended from £50,000 to £2m.

“Today we started putting out documents for the industry that set forth what we intend to do with the powers and what communication suppliers can do to adhere to the new rules,” said an Ofcom spokeswoman.

“We also want to let consumers know that they will be given more protection.”