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Ofcom fines Virgin Media £28m for customer cancellation issues

Created at 8 Jul · 6:45 AM2 sources↑ Market-relevant
IN SHORT

Virgin Media has been fined £28 million by Ofcom for making it difficult for customers to cancel contracts. The regulator found millions of calls were mishandled between January 2022 and September 2024, with tactics including call-dropping and excessive hold times.

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Key Numbers

£28mVirgin Media fine amount
30%fine reduction for admitting fault
January 2022 to September 2024investigation period
over a millioncallers made to repeat cancellation requests
1,881customers reported difficulties cancelling
89%lower complaints relating to difficulties leaving last year than in 2023

Who's Involved

Ofcom
UK communications regulator that issued the fine
Virgin Media
Telecommunications company fined for customer cancellation issues
Natalie Black
Ofcom's group director of infrastructure and connectivity
Faarea Masud
Business reporter
Ofcom fines Virgin Media £28m for customer cancellation issues

↳ Why This Matters

The substantial fine highlights Ofcom's commitment to protecting consumers from unfair practices by telecommunications providers, sending a strong warning to other companies about the consequences of hindering contract cancellations.

Key facts

  • Virgin Media was fined £28 million by Ofcom for customer cancellation issues.
  • The fine covers the period from January 2022 to September 2024.
  • Ofcom found tactics such as deliberate call-dropping and excessive hold times.
  • The penalty was reduced by 30% due to Virgin Media admitting fault.
  • This is Ofcom's largest fine under its consumer protection rules.

Virgin Media has been fined £28 million by the UK's communications regulator, Ofcom, for repeatedly making it difficult for customers to cancel their contracts. Ofcom stated that the company subjected customers seeking to switch providers to "unreasonable effort, hassle and difficulty." An investigation covering January 1, 2022, to September 11, 2024, uncovered "systematic and repeated failings" in Virgin Media's contract termination procedures.

Ofcom found that Virgin Media employed a two-tier system for retention agents, with only those in the second tier able to process cancellations. This resulted in over a million callers reportedly being made to repeat their cancellation requests. The regulator also uncovered "widespread and, in many cases, deliberate mishandling of calls by retention team agents," who were found to be making "repeated attempts to pressure customers to stay" and engaging in "unnecessary or excessive call transfers." Additionally, Virgin Media was found to have "excessively, unnecessarily and repeatedly" kept customers on hold or deliberately dropped calls.

Natalie Black, Ofcom's group director of infrastructure and connectivity, emphasized that the fine sends a "clear message" to providers that they will "pay a heavy price" for acting against customer interests. The penalty was reduced by 30% because Virgin Media admitted to the failures and settled the case. The fine is Ofcom's largest ever for direct harm to consumers and will be passed on to the Treasury. Virgin Media had previously been fined for a breach of the same rule in 2018.

Frequently asked questions

Virgin Media has been fined £28 million by Ofcom.

The company was fined for making it difficult for customers to cancel their contracts, pressuring them to stay, and mishandling cancellation calls between January 2022 and September 2024.

Tactics included excessive call transfers, deliberate call-dropping, repeated pressure to stay, and unnecessarily keeping customers on hold.

Yes, the penalty was reduced by 30% because Virgin Media admitted to the failures and settled the case.

What Happens Next

01The fine will be passed onto the Treasury.

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Cadence

How It Developed

Ofcom fined Virgin Media £28m for making it difficult for customers to cancel contracts.
Virgin Media has been fined £28m for repeatedly preventing customers from cancelling contracts.
Ofcom found millions of customer calls between January 2022 and September 2024 were likely mishandled to delay or prevent cancellations.
Tactics included excessive call transfers, deliberate hang-ups, pressure to stay, and unnecessary hold times.
The penalty was reduced by 30% because Virgin Media admitted fault and settled the case.
The fine is Ofcom's largest ever under its consumer protection rules and its third largest overall.
Virgin Media stated it has redesigned its customer service and complaints are now at record lows.

Sources

T1
Virgin Media fined £28m for preventing customers from cancelling contractsBBC News
T1
Virgin Media slapped with £28m fine for stopping customers cancelling dealsCity AM

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