BT Refunds £18 Million to Customers After Ofcom Enforcement Action

BT has returned a total of £18 million to customers in the form of refunds and account credits, following enforcement action by Ofcom.

The action stems from a breach of consumer protection rules, which require telecoms companies to provide customers with clear and simple contract information before they commit to a new agreement. In 2024, BT was fined £2.8 million for failing to meet these obligations.

After engaging with Ofcom, BT acknowledged the breach and began contacting affected customers. The company admitted that it had not supplied the necessary contract summaries and full contract information, and gave customers the chance to request the correct details or cancel their contracts without penalty.

However, before these communications were sent, some impacted customers had already left BT early and were charged early exit fees. According to Ofcom’s rules, if the required contract information isn’t provided, any resulting agreement is not legally binding — meaning early termination charges should not have been applied.

Alongside the financial penalty, Ofcom instructed BT to revise its sales processes and issue refunds to any customer wrongly charged for leaving early. In cases where refunds or credits couldn’t be processed, BT was required to donate the equivalent amount to charity.

As a result of the enforcement:

• £18 million has now been refunded or credited to affected customers

• An additional £440,000 has been donated to 17 charities where customer reimbursements were not possible

This action underscores Ofcom’s commitment to protecting consumers and ensuring transparency in the telecoms sector.