OFCOM FINES VIRGIN MEDIA £28M FOR BLOCKING CUSTOMER CANCELLATIONS

Ofcom has issued a £28m fine to Virgin Media for repeatedly preventing customers from cancelling contracts over a three-year period. The regulator found that millions of phone calls from customers between 1 January 2022 and 11 September 2024 were "likely mishandled" by call agents in order to delay or prevent switching to competitors. Ofcom said the penalty represents its largest fine ever issued under consumer protection rules, and its third largest fine in total.

The investigation identified specific tactics employed by Virgin Media staff, including excessive and unnecessary call transfers, repeated pressure to keep customers with the company, and unnecessarily prolonged hold times. Ofcom stated that Virgin Media's commission scheme "effectively encouraged" call centre agents to engage in these practices by financially rewarding such behaviour. The regulator also found instances of "deliberate call-dropping" designed to obstruct customers seeking to leave. Ofcom received complaints from 1,881 customers reporting difficulties in cancelling their contracts.

Ofcom reduced the fine by 30 per cent after Virgin Media admitted its failing and agreed to settle the case. Natalie Black, Ofcom's group director for infrastructure and connectivity, stated that the company "made it harder for customers to cancel their contracts and then did not fully cooperate" with the investigation. Black said the fine sends a message that providers acting against customer interests "will pay a heavy price."