Phones 4 U are being investigated by Ofcom, Phones 4 U who are a highly popular high street retailer in the UK are facing this investigation for alleged mis-selling, misrepresentation, so-called “cash back” offers and hidden charges which are proved to be unclaimable.
Phones 4 U have over 440 stores in the UK and have generated sales in the excess of £755mn in 2007 alone which makes them a major player. Ofcom the UK Telecoms regulator have had a number of complaints about the alleged things said above. Ofcom has said that they will provide their judgment on its findings within 6 months, Phones 4 U have indeed said that they will comply with all the requests for information.
Complaints were made both to Consumer Direct and Ofcom which is all part of trading standards and an Ofcom spokeswoman said that customers concerns which included Phones 4U staff allegedly misrepresenting tariff terms and cash back deals to customers and the full cashback conditions which makes redemption conditions too stringent, Phones 4 U are apparently offering mobile phone upgrades to customers without outlining costs. If these allegations are found to be right it would mean Phones 4 U will be indeed in breach of the Enterprise Act 2002, which deals with consumer protection which would in return making Ofcom seeking to bind Phones 4 U to a legal commitment to cease such activity.
A Phones 4U spokesperson said: “We intend to cooperate fully with Ofcom in this matter and we are in discussion with them. “Phones 4U prides itself in maintaining the highest standards of customer service and if any instances where this has not been the case is brought to light, as a result of this enquiry, we will act accordingly.”
Please let us know if you have had any troubles with Phones 4 U?
Source – FT.com