Virgin Media Fined for Cutting Off Vulnerable Customers

Introduction to the Fine

Virgin Media has been fined £23.8m by the regulator, Ofcom, for cutting off vulnerable customers during a phone line migration. This migration involved switching old analogue lines to a digital alternative at the end of 2023. The regulator ruled that the telecommunications company had placed thousands of people “at imminent risk of harm” by doing so.

The Reason Behind the Fine

The issue arose with users of Telecare, an emergency alert and monitoring service. These users would be switched off if they did not take part in the conversion process. Ofcom stated that Virgin Media had disclosed its own failures to comply with consumer protection regulations and that its full cooperation was taken into account when determining the amount of the penalty.

Response from Ofcom

Ian Strawhorne, Ofcom’s head of enforcement, said, "It is unacceptable that what should have been a safe and straightforward upgrade to their landline services left vulnerable customers at direct risk of harm and without adequate support from Virgin Media." He further emphasized, “Today’s fine makes it clear to businesses that they will face similar enforcement action if they fail to protect their vulnerable customers.”

Findings by Ofcom

Ofcom found that Virgin Media failed to properly identify and record the status of Telecare customers. This led to significant gaps in the verification process, resulting in those affected not receiving the appropriate level of tailored support throughout the migration process. The regulator also criticized Virgin Media’s approach to disconnecting Telecare customers who did not engage in the migration process, despite being aware of the risks involved.

Impact on Vulnerable Customers

The regulator said it had put thousands of vulnerable customers “at direct risk of harm” and blocked their devices from connecting to alarm monitoring centers while the disconnection was in effect. The money from the fine will go to the state treasury.

Response from Virgin Media

A Virgin Media spokesperson acknowledged the issues, stating, “As traditional analogue landlines are less reliable and more difficult to maintain, it is important that we transition our customers to digital services. While in the past most migrations have been completed without issue, we recognize that we did not get everything right and have since addressed the migration issues identified by Ofcom.” They emphasized that the safety of their customers is always their top priority and have introduced a comprehensive package of improvements and enhanced support for vulnerable customers.

Actions Taken by Virgin Media

These improvements include improved communications, additional support at home, and comprehensive post-migration checks, as well as working with industry and government on a joint national awareness campaign. Virgin Media has worked closely with Ofcom, telecare providers, and local authorities to identify customers who need additional support and is confident that the processes, policies, and procedures now in place will enable them to safely transition customers to digital landlines.