BT Faces Lawsuit and $815 Million Fine Over Overcharging Claims

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A BT Group Plc logo on a EE storefront in London, U.K., on Tuesday, Nov. 24, 2020. The U.K. is considering a ban on the installation of Huawei Technologies Co. 5G equipment as soon as next year to appease hawks pushing for tighter restrictions on the Chinese network equipment maker, according to people familiar with the matter.
A BT Group Plc logo on a EE storefront in London, U.K., on Tuesday, Nov. 24, 2020. The U.K. is considering a ban on the installation of Huawei Technologies Co. 5G equipment as soon as next year to appease hawks pushing for tighter restrictions on the Chinese network equipment maker, according to people familiar with the matter.

(Bloomberg) -- U.K. telecommunications provider BT Group Plc is facing a lawsuit over claims of overcharging customers, which could cost the company almost 600 million pounds ($815 million).

Justin Le Patourel, founder of Collective Action on Land Lines, known as CALL, said in a statement on Sunday that the group has hired law firm Mishcon de Reya to file a claim with the Competition Appeal Tribunal.

In 2017, Britain’s telecommunications watchdog Ofcom found BT guilty of overcharging landline customers since 2009. As a result, the company was forced to reduce monthly costs by about 7 pounds each. However, its customers weren’t compensated for the previous eight years of overcharging, Le Patourel said in the statement.

“The filing of this claim starts that process,” he said.

Current British legal rules stipulate that it’s not possible to make compensation claims for alleged overcharging all the way back to 2009, so CALL is seeking damages from 2015. “This makes the claim, worth 589 million pounds, comprising 200-500 pounds for each of the 2.3 million affected customers.”

People affected by the alleged overcharging purchased a BT landline but did not also take broadband from the provider, CALL said. “These customers were, according to Ofcom, more likely to be old, on low incomes and vulnerable.”

Le Patourel is also seeking compensation for consumers who were excluded from 2017’s price cut that are still being overcharged. These clients had subscribed to both a broadband service and a landline, but not in a combined package.

The claim against BT was first reported by the Sunday Times.