9/25/2008 11:55:00 AM
Repairer dropped as Phones 4u tackles Ofcom investigation
Phones 4u will hear the outcome of the Ofcom investigation into accusations of mis-selling at the retailer within a fortnight.
The retailer’s management are believed to have been in discussions with the regulator since it first emerged that Ofcom was investigating Phones 4u in May this year.
A large part of the complaints are believed to centre on repairs, culminating in Phones 4u breaking out of its repairs partner, MPRC, which the retailer blamed for the complaints.
MPRC has since been closed down by its parent company (and former sister company to Phones 4u), 20:20 Mobile. Phones 4u has switched its repairs partner to A Novo since breaking its agreement with MPRC.
Ofcom pursued Phones 4u under the enterprise act after what was described as ‘an exceptionally high number of complaints’.
New rules on selling contracts will be imposed from the middle of October.
Phones 4u is understood to have also looked to put new measures in place to stop complaints and is expected to emerge cleared from the accusations from the investigation. The retailer was threatened with court proceedings if it continued to fail to control the complaints.
Phones 4u dismisses box-breaking allegations
Phones 4u has dismissed allegations of a new box-breaking incident after it emerged that one staff member at a Manchester store sold 190 prepay phones in one day.
The company has attributed the high number to a big local council client which was cleared by Phones 4u’s compliance team.
The issue first surfaced amid box-breaking allegations on Phones 4u’s new online chat forum, where all staff can communicate on their intranet system. A thread was opened in which staff discussed the alleged large-scale box-breaking transactions.
The phones involved were largely the Sony Ericsson K800i on Vodafone on 7 April this year at a store in Manchester.
Operators have told Mobile that Phones 4u traditionally has much higher than average quality on prepay.