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13|04|05

Mandatory sales and marketing Codes of Practice for fixed-line telecoms services

Ofcom today announced the introduction of mandatory Codes of Practice for sales and marketing in fixed-line telecoms services to address concerns about mis-selling and other abuses of marketing activity.

UK consumers benefit from a competitive market for fixed-line telecoms which offers lower prices and greater choice. However, there is also the potential, under certain circumstances, for abuse of marketing channels. The term mis-selling includes so-called slamming, where consumers are switched from one supplier to another without their knowledge and consent.

All companies selling fixed-line telecoms services will be required to draw up Codes of Practice consistent with published guidelines, then comply with these in all sales and marketing activities. This obligation will come into effect six weeks from today and will remain in place for two years. The obligation will then be reviewed and removed if there is evidence that sales and marketing abuses have reduced from current levels.

Ofcom will investigate allegations of mis-selling on a case by case basis, in line with its published complaints and disputes guidelines. If companies breach these obligations, Ofcom's enforcement powers will now include the ability to secure written undertakings from companies about their sales and marketing practices. Sanctions in the event of continued breaches will include the potential to impose fines of up to 10 per cent of turnover.

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.”

He added: “These measures should help support progress towards the appropriate levels of clarity and transparency whilst the market continues to mature.”

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