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Slamming

During the year a rising number of customers complained about companies who make cold calls claiming to represent O2. These callers offer to upgrade or renew the customer’s O2 package when they actually represent other networks. By agreeing to the ‘O2’ upgrade, the customer is transferred to another operator network – a practice called ‘Slamming’. 

We stepped up action against slammers in 2007.

Successful legal action was concluded against Communications Direct Ltd and Landmark Marketing Services Ltd.

O2 took Landmark Marketing Services Ltd (trading as Landmark Communications) to court in 2006. Landmark was offering airtime contracts on behalf of at least one other mobile operator and had persistently targeted O2 customers. It had ‘churned’ – or transferred - significant numbers of customers to another network without customers knowing. In December 2006, Landmark entered into a settlement agreement with O2, put a stop to the practice of mis-selling, agreed to act honestly and lawfully when selling mobile phone contracts and paid O2 £500,000 in compensation.

We have also set up a process to encourage our customers to report slamming or mis-selling. Through O2’s Nuisance Call Bureau, customers can now report any instances of alleged misconduct to a specially trained team. We also offer advice on our website: www.o2.co.uk/help/nuisancecalls

Cold calling O2 customers is unlawful if the caller:

  • Breaks the Consumer Protection (Distance Selling) Regulations.
  • Pretends that they are O2 or connected to O2.
  • Misleads the customer into believing false statements and then induces the customer to enter into a contract on the basis of those incorrect facts.
  • Attempts to obtain information by misleading the customer or through fraudulent behaviour.
  • Continues to call the customer after they have indicated that they do not wish to receive future calls.
  • Fails to advise the customer that he has 7 days within which to terminate the contract.
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