Vodafone, EE, Three and O2 are facing a class action lawsuit worth “over £3 billion” for allegedly using their market power to overcharge up to 28.2 million mobile phone contracts in the UK.
Four major network operators are accused of penalizing loyal customers, customers who pay more for the same service than new customers.
Many contracts provide for repaying the price of the smartphone in stages over two to three years, but the company reportedly did not reduce the monthly fee once the device was paid for.
The suit, brought by former Citizens Advice executive Justin Gutman and law firm Charles Lyndon, is seeking at least £3.285 billion in damages.
Mr Gutmann claimed that if successful, affected consumers could receive up to £1,823 each.
The class action was filed at the Competition Appeal Court in London.
All eligible consumers will automatically be included in your bill free of charge unless you follow specific opt-out steps.
This complaint follows a ‘super complaint’ made by Citizens Advice to the Competition and Markets Authority (CMA) in September 2018, following the CMA’s finding that: You paid for the device at the end of the minimum contract period.
“This is unfair and it has to stop.”
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Mr Gutmann said: “I am bringing this class action because these four mobile phone companies have systematically exploited millions of loyal customers across the UK through loyalty penalties, leaving hard-working people and their families out of pocket. “We believe that more than £3 billion has been extracted from the public.” .
“These companies continued to take advantage of their customers despite the 2008 financial crisis, COVID-19, and now the cost of living crisis. It’s time to hold them accountable.”
A spokesperson for O2 said: “To date, we have not been able to contact our legal team regarding this allegation. However, 10 years ago we entered into a separation agreement that automatically and completely reduces our customers’ bills. We’re proud to be the first provider to start.” I have finished paying my mobile phone bill.
“We have long called for an end to ‘smartphone fraud’ and for other mobile phone carriers to stop the egregious practice of charging customers for phones they already own. Ta.”
An EE spokesperson said: “We strongly oppose the speculative claims being brought against us. EE has a wide range of tariffs and a robust process for dealing with contract termination notices.” Stated.
“The UK mobile market is highly competitive, with pricing among the lowest in all of Europe.”
Vodafone said: “This matter has only recently come to our attention and we do not yet have sufficient details for our legal team to assess.”
Source: news.sky.com
