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Own-initiative investigation into TalkTalk Group’s billing for cancelled services

Document Cited authorities 3 Cited in Related
Vincent
IssuerOffice of Communications
Categories

Complainant: Own-initiative investigation
Complaint against: TalkTalk Telecom Limited and Tiscali UK Limited (together, for ease of reference, the TalkTalk Group)
Case opened: 23 July 2010
Investigation closed: 2 November 2010
Case closed: 18 August 2011
Issue: Whether the TalkTalk Group is complying with the requirement not to bill customers for services that have not been provided.
Relevant instrument: General Conditions 11 ("GC11") of the General Conditions of Entitlement.

Update note – 23 September 2011

Ofcom has today published the non-confidential version of the notification issued to TalkTalk Group on 17 August 2011 of a penalty under section 96 of the Communications Act 2003. This document can be found at the relevant link under ‘related items.’

End of update note

Ofcom has concluded its investigation into TalkTalk Group’s compliance with GC11.1 by the deadline set out in the notification issued to it on 1 November 2010.

The investigation found that whilst TalkTalk Group took significant steps to remedy the consequences of its breach of GC11.1, it had not taken the steps Ofcom considered appropriate for complying with GC11.1 and had continued to breach that Condition (by issuing 2,928 bills to customers (end-users) for services it had not provided in the period between 2 December and 4 March 2011).

Ofcom has decided to impose on TalkTalk Group a financial penalty under section 96 of the Act. The amount of that penalty is £1,524,728 in respect of TalkTalk Telecom Limited and £1,512,392 in respect of Tiscali UK Limited. The penalty is imposed on both companies for their contravention of GC11.1 between 1 January and 1 November 2010 notified to them under section 94 of the Act, in which period they billed 62,055 customers for services they had not provided (in particular, for cancelled services).

In reaching its decision, Ofcom took account of the available evidence, TalkTalk Group’s representations, the steps it had taken towards complying with GC11.1, the significant steps it had taken to remedy the consequences of its breach; and Ofcom’s penalty guidelines.

A non-confidential version of the penalty notification is currently being prepared and will be published in due course.

Update note: 28 February 2011

Ofcom has considered the representations made by TalkTalk Group in detail. Ofcom has also issued a further information request to TalkTalk Group to determine the level of compliance and remedial action it had taken...

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