Virgin Media Fined $28 Million for Hindering Contract Cancellations

Virgin Media has been fined 28 million British pounds (approximately $35 million USD) for repeatedly preventing customers from canceling their contracts, the UK's communications regulator, Ofcom, announced. The company's actions, which occurred over nearly a three-year period, involved tactics that hindered or delayed millions of customers from switching to different providers.

Ofcom's investigation revealed that Virgin Media employed "deliberate call-dropping" tactics and placed customers on hold unnecessarily. The regulator also found excessive call transfers and noted that the company's commission structure for call center agents financially encouraged such behavior. These practices are believed to have resulted in significant direct harm to consumers.

Natalie Black, Ofcom's group director for infrastructure and connectivity, stated that Virgin Media made it difficult for customers to cancel their contracts and did not fully cooperate with the investigation. The imposed fine is the largest ever issued by Ofcom under its consumer protection rules for direct harm caused to consumers. The penalty was reduced by 30% because Virgin Media admitted its failings and agreed to settle the case.