Three Ireland hit with largest ever ComReg retail penalty

Three Ireland has been hit with a €575,000 fine for breaching the rules that govern changes to customers’ contracts and switching.

Three Ireland hit with largest ever ComReg retail penalty

Three Ireland has been hit with a €575,000 fine for breaching the rules that govern changes to customers’ contracts and switching, writes Catherine Shanahan.

It is the largest retail penalty ever imposed by the communications regulator, ComReg.

Three’s behaviour came to light largely because customers could not access the helpline number they needed to call if they wanted to cancel their contracts before the changes took effect.

The proposed contract changes related to a price increase of up to €5 a month for Three’s 1.3m prepay and bill pay customers and changes to terms and conditions under “all you can eat data” ahead of the abolition of EU roaming charges.

Customers’ inability to contact the 1800 number supplied by Three led to a “significant volume of complaints” to ComReg.

“The nature of the complaints varied but the majority of complainants were unhappy that they were unable to gain access to the notified 1800 number,” ComReg said.

The 1800 number was issued to pay as you go and bill pay customers on March 3, along with notification their terms and conditions were to change from April 3.

ComReg paid a visit to Three’s head office in Dublin and subsequently issued it with notifications of non-compliance with certain communications regulations, namely: Failure to properly advise customers of the nature of the proposed contract changes, or to adequately facilitate their right to exit contracts without penalty, after being notified of the proposals.

ComReg also found Three had “failed to ensure that its conditions and procedures for contract termination did not act as a disincentive to consumers changing service provider” — essentially, that it was difficult for customers to switch.

Yesterday a spokesperson for the telecoms company said it had refunded anyone charged an early termination fee as a result of withdrawal from their contract on foot of the proposed changes.

However, the spokesperson was unable to say how much has been paid in refunds to date. She said Three had also re-notified customers of the contract changes that came into effect on April 3 and had identified and contacted customers who had been unable to contact the 1800 number and advised them of their right to withdraw without penalty.

The spokeswoman said a “small cohort” of their 1.3m prepay and bill pay customers had been affected by the issues raised by ComReg.

However, she was unable to say what a “small cohort” amounted to.

Three has also told ComReg that it will not, in future, apply an early termination fee or other penalty, if a customer exercises their right to cancel their contract within a month of proposed changes taking effect.

Going forward, customers will be able to notify Three of their cancellation request by phone, post, online chat, or by visiting a retail store and Three will “promptly confirm such cancellation requests using the same channel of communication”.

Three also said it would not engage in “save” activity, whereby efforts are made to retain the customer, without first seeking the customer’s blessing to have that conversation.

This story originally appeared in the Irish Examiner.

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited