Retailer asked to commit to changes in returns, cashback and mis-selling
Phones 4u has been cleared in Ofcom mis-selling investigation, but it has been given strict new 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 high level mis-selilng, which have led to an estimated 2,000 complaints in three months to the regulator, only about Phones 4u.
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 better its sales process in four points, where it was found to be in breach of consumer protection laws:
- Phones 4u didn’t 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.
- It 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".
See:-
here.
