logo-loader

BT slips as it faces class action lawsuit over landline overcharging

Published: 10:51 18 Jan 2021 GMT

BT Group PLC - BT slips as it faces class action lawsuit over landline overcharging

BT Group PLC (LON:BT.A) has said it intends to “vigorously defend itself” against a class action lawsuit that claims it failed to compensate mostly elderly customers for overcharging them for landlines over an eight year period.

The lawsuit, filed with the Competition Appeal Tribunal (CAT) by law firm Mishcon de Reya, is reported worth £600mln and could result in £500 individual payments to 2.3mln BT customers if it is successful.

READ: Sell BT says UBS on risks from competiton, pension deficit and spectrum costs

Telecoms regulator Ofcom found in a 2017 review that the FTSE 100 firm had been overcharging the customers for their landline-only packages since 2009, following which BT cut the price of its landlines by around £7 per month.

However, since then campaigners have said the company has not compensated the 2.3mln customers for their previous overcharging, however in a statement responding to the lawsuit filing BT said Ofcom had found “no finding of excessive pricing or breach of competition law more generally”.

“We strongly disagree with the claim being brought against us. We take our responsibilities to older and more vulnerable customers very seriously and will defend ourselves against any claim that suggests otherwise”, a spokesman for the company said on Sunday.

“We assure our customers, including the elderly and vulnerable, that we will not let this claim disrupt the relationship BT has with them particularly at this critical time, when our people have been working so hard to keep them connected with their loved ones. We will continue to offer a variety of packages to support our customers through the pandemic”, BT added.

The company’s shares dropped 2.2% to 137.7p in mid-morning trading on Monday.

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

56 minutes ago