11/10/2008 11:58:00 AM
Phones 4u given strict guidelines by Ofcom
Phones 4 u has been given the all clear by Ofcom to continue trading as expected, but has been forced to make commitments in four areas to improve its selling methods.
The company has been singled out by Ofcom for a high level of mis-selling, which has led to an estimated 2,000 complaints about Phones 4u in three months.
Since then the company has clarified its sales practice, made its cashback policy more transparent and bettered its returns policy.
As a result of the six month investigation, Phones 4u has been asked to improve its sales process in four points, where it was found to be in breach of consumer protection laws:
- Phones 4u did not provide customers with a refund when they returned faulty handsets within a reasonable period of time, that were purchased directly from Phones 4u.
- The company included unfair terms in their handset return policy.
- Phones 4u used unfair terms contained in cashback schemes.
- The retailer made misleading, false or deceptive representations or omissions to consumers about matters such as network coverage in particular areas, or what was included in their mobile phone plan.