GiffGaff is fined for £1.4m for overcharging many customers who had purchased prepaid packages of voice minutes, data, and text messages over a period of 8 years.
These service packages should have been free of cost from the very day when the customers bought them. However, delays in implementing goody bag packages to accounts suggested that the voice calls and data were charged twice to the customer.
A penalty of £1.4m also includes a 30 percent reduction because GiffGaff announced its billing blunders to the controller and consented to the agreement.
Giffgaff has just paid around £2.1m to concerned customers. Where the company has not been capable of tracking all the affected customers and issuing their refund, the relevant sums have been distributed to charity, Ofcom stated.
Ofcom’s Director of Investigations and Enforcement, Gaucho Rasmussen, stated that receiving bills corrected is a fundamental responsibility for each telephone company. However, Giffgaff committed an inappropriate blunder by letting a large number of customers spend extra on their services. This penalty should serve as a notice to all telecommunications providers. If firms make such blunders in bills, then we’ll venture in to secure the customer, according to international media.
Throughout Ofcom’s investigation, Giffgaff failed to give exact data in light of two statutory information demands. Subsequently, Ofcom charged an extra fine of £50,000.