BT Group faces £600 million lawsuit for landline overcharges

BT Group faces £600 million lawsuit for landline overcharges

by Pranali Mehta

The British multinational telecommunications giant, BT Group, has reportedly faced a £600 million lawsuit for overcharging customers for landline telephone services. After a tribunal authorized an appeal to begin a civil lawsuit against BT over claims of it overcharging the people for phone line services, nearly 2.5 million of BT customers are liable to collect up to £500 individually.

The founder of the consumer group Collective Action on Landlines, Justin Le Patourel, has approved Competition Appeal Tribunal’s (CAT) decision to sue BT on account of 2.3 million telephone line consumers in a groundbreaking £600 million lawsuit.

It has been reported that customers, especially those in low-income and older households, are owed reimbursement for the payments done between October 2015 to April 2018.

Le Patourel stated that BT has allegedly been charging hefty amounts from their millions of consumers for several years, unless they voluntarily choose to opt-out.

The petition against BT was lodged by the legal advisor Mishcon de Reya, and will go to the judicial proceeding on October 19, with an anticipated hearing.

However, BT disagrees with the alleged lawsuit and considers all standing options to ‘vigorously defend itself’, claiming that they are seriously responsible towards their customers.

The three-member tribunal, on the other hand, mutually voted that the lawsuit had sufficient substance to be investigated, further stating in its 42-page judgment that the claim is substantially strong and should be pursued.

Essentially, Le Patourel has filed the lawsuit by addressing the Ofcom investigation conducted against BT in 2017 where it was found that the landline users are not getting value for their money.

The following year, BT reduced landline prices for 1 million elderly subscribers by £7 per month but did not compensate them for former overbilling.

On the contrary, BT declared that it had been offering a cheaper social tariff for a couple of years, and it had recently renewed it to aid a prospective 4 million low-income homes.

Source credits: https://www.theguardian.com/business/2021/sep/28/bt-faces-600m-legal-case-over-landline-charges

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...