Virgin Media has been fined £23.8MN after failing to protect thousands of vulnerable customers.
In a report published earlier this week, UK broadcast regulator, Ofcom, had concluded that the telecommunications giant had failed to follow regulations by disconnecting some of its most vulnerable customers from their only source of contact.
It was further determined that Virgin Media had neglected to identify and keep track of landline users who relied on network-connected emergency alarm systems.
In an X post on Monday, the UK broadcast regulator had announced its decision to fine Virgin Media after determining that the steps taken had placed many of its landline users at risk.
“We have fined Virgin Media £23.8 million for putting vulnerable customers at risk of harm while migrating them from analogue to digital landlines.”
This incident had occurred during Virgin Media’s decision to switch its landline users from analogue to digital after concluding that its older, copper-based network was becoming increasingly unreliable.
And just over a year after launching a nationwide transition to modernize its telecare customers, the provider had observed several incidents during this migration process.
At the end of 2023, Ofcom launched its investigation into the communications provider after being notified of possible regulatory misconduct between August 2022 and December 2023.
Virgin Media, which had contacted the regulator over migration concerns, was found to have violated its policies under general condition C5.2, concluding that Virgin Media had failed to:
Identify and record telecare customers in accordance with its policy, noting significant gaps when documenting and screening customers to identify their status, resulting in many customers being unable to access adequate support.
Place safeguards before disconnecting telecare customers from landline contact, despite being aware of the risks this could pose, Virgin Media chose not to comply with its vulnerability policy, placing its users at risk of harm, especially in cases where alarm monitoring centers required these disconnected devices to function correctly.
In return for also breaking Ofcom’s consumer protection regulations, Virgin Media was fined £23.8MN after concluding its two-year investigation.
However, after acknowledging Virgin Media’s decision to self-report the incident and attempt to rectify its mistakes, the telecoms provider was awarded a 30% discount on the fine for bringing the matter to Ofcom’s attention.
Despite this, the penalty reached determined the seriousness of the breach committed, and the vulnerable customers who had become collateral damage.
This has also included Ofcom’s previous contact with telecom companies to remind them of the regulations surrounding telecare users when migrating their devices, as any disruption to a user’s connectivity can pose a risk to their safety.
Ian Strawhorne, Director of Enforcement at Ofcom, highlighted how Virgin Media’s actions did not match up with its own policies set, and received appropriate punishment for placing its vulnerable customers at risk.
“It’s unacceptable that vulnerable customers were put at direct risk of harm and left without appropriate support by Virgin Media, during what should have been a safe and straightforward upgrade to their landline services,” He explained.
“Today’s fine makes clear to companies that, if they fail to protect their vulnerable customers, they can expect to face similar enforcement action.”
Following this investigation, Virgin Media has outlined its next step plans to ensure that its telecare customers receive the expected standard of support and compliance with regulations throughout the remainder of its digital switchover process:
- Human agents are to conduct reviews of customer service records to ensure that the company is compliant with telecare customer regulations.
- They will incorporate the information gathered from this technique to ensure high operational standards are implemented.
- Its service team will remain in contact with almost 43,000 identified telecare customers to ensure the migration process is conducted smoothly throughout.
- Establish a brand-new engagement strategy for telecare customers to ensure that they have continuous access to contact during the disconnection period.
- Will work with the local authorities to be kept in the loop on which users have not been in contact recently before the analogue decommissioning takes place.
- Committed to the UK government’s voluntary frameworks that lay out how telecommunication providers should be protecting and supporting its customers.
