Virgin Media slammed by consumer group
August 24, 2023
By Chris Forrester
Which?, the UK consumer organisation, has called on regulator Ofcom to look into “egregious” pricing tactics by Virgin Media and its “woeful” customer service.
Which? argues that Virgin Media could be breaking the law and has given itself “sweeping powers” to hike broadband fees by unlimited sums whenever it wants.
The consumer organisation says that Virgin Media is slapping on inflation-linked price rises and giving subscribers only pay-up or quit threats with high prices for cancelling a service.
Which? says it is the “most egregious example of unacceptable price hiking practices across the broadband industry”.
Which? added that Virgin Media’s customer service is simply “woeful” and worsens the situation.
Regulator Ofcom is already investigating Virgin Media following customer complaints over the difficulties they have had in cancelling their contracts.
Rocio Concha, director of policy and advocacy at Which? said that Virgin Media’s methodology is “not only unacceptable but potentially unlawful, and Ofcom must investigate urgently.”
In response to the report, Virgin Media said: “As we have told Which? directly, we strongly reject many of the claims they have made – some are a deliberate misrepresentation of the facts (after we provided them with said facts), and others are just simply incorrect. Our contracts are not ‘unlawful’, we are not ‘breaking the law’ – ‘potentially’ or otherwise, and we are not “having our cake and eating it”. Which? is misrepresenting a separate clause in our T&Cs which does not specifically relate to customers’ monthly subscription charges but instead to other out-of-bundle charges. Our T&Cs are also written almost identically to those of other providers, so we’re not really sure why Which? has decided to single out one provider.”
Commenting on the accusations, Alex Tofts, broadband expert at Broadband Genie, said: “While it’s positive to hear that Virgin Media is being challenged on the clarity of its contracts, the uncertainty and confusion surrounding mid-contract price rises goes far wider than a single provider. Linking consumer bills to a yardstick as unpredictable as future levels of inflation was always a recipe for trouble, but when the rates were low it was easy to kick the can down the road Over the last couple of years, the surge in the cost of living has brought the chickens home to roost, with broadband customers suddenly facing inescapable double-digit price rises that were written into their contracts. Ofcom is currently reviewing whether these inflation-linked increases are sufficiently clear and fair for consumers, but it’s obvious that they are not. Getting rid of mid-contract rises should be the regulator’s priority, and it is hoped that we will soon see the back of them.”
“In the meantime, customers should make sure they know exactly what they are getting themselves into when signing up to a new deal. While it’s easy to gloss over the terms and conditions, by not doing your due diligence it could cost you down the line. And if you do decide to switch providers before your contract is up, you could find yourself having to fork out for a substantial exit fee. If you were among those hit with an unfair price rise, wait until your contract is up for renewal and switch to a provider that does not have punitive contract clauses. Some also have options that can ease the pain of an early exit fee. For example, Sky will credit new customers up to £100 for moving over to certain broadband packages,” added Tofts.