OFCOM Tightens Up

At last. A government regulator finally grabs the bull by the horns and announces some meaningful action. OK - its only an announcement as yet but telecomms may be getting its house in order. The amusing thing is that I discovered this gem by accident - via a BT communication!

Ofcom has introduced mandatory Codes of Practice for sales and marketing in fixed line telecomms services to address concerns about mis-selling and other abuses of marketing activity. Mis-selling arises primarily in the context of Carrier Pre-Selection (CPS) and Wholesale Line Rental (WLR). As one might expect, there is no legal definition of "mis-selling"! In general terms, BT and others understand it to refer to sales and marketing practices that are misleading, deceitful or oppressive. Most people feel these practices are unacceptable, possible even illegal. The regulator has concluded that customers need more protection following a detailed consultation which included analysis of the scale of the problem.

All companies selling fixed line telecomms services ("communications providers") will be required to draw up Codes of Practice (consistent with Ofcom's published guidelines) and comply with these in all sales and marketing activities. The requirement extends to those providers who supply calls over ordinary fixed telephone lines (not over cable or broadband-capable lines), and/or supply the lines themselves.

This obligation will come into effect on 25th May 2005 and will remain in place for two years. The obligation will then be reviewed by Ofcom and removed if there is evidence that sales and marketing abuses have reduced from current levels.

There will not be a single industry wide Code of Practice and BT is currently developing its own. The Code will set out the standards of behaviour that BT promises to adhere to when marketing and selling its fixed-line electronic communications services to residential and "small business customers" (defined by Ofcom as a business employing 10 or fewer employees) - regardless as to whether that contact is face-to-face, online or over the telephone. BT will be responsible, as the communications provider, for the adherence of its partners and resellers to its Code of Practice.

OFCOM Code of Practice