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BT Excessive Pricing Class Action Lawsuit Overview:
- Who: A former employee of telco regulator Ofcom is suing BT on behalf of 2.3 million customers
- Why: BT is accused of abusing its dominance in the telecommunications market to rip off customers who only got landlines through the company, instead of bundling with WiFi deals
- Where: The case is being heard in the UK Competition Appeal Tribunal
A £469 million lawsuit alleging BT grossly overcharged millions of customers who only have landlines through the company—many of whom are elderly—has got the green light to proceed from a UK court.
On Sept. 27, the UK’s Competition Appeal Tribunal (CAT) certified the abuse of dominance class action claim against BT to go ahead, the first time an excessive pricing class action has been certified.
The class action was brought by former Ofcom employee Justin Le Patourel, who worked at the telco regulator when it was producing reports on BT’s excessive pricing.
It seeks to represent about 2.3 million customers: Those with landline-only contracts, and those who bought a landline through BT, and then signed up to broadband separately but did not get it bundled.
The lawsuit refers to a 2017 report from Ofcom which found that BT landline rental prices had risen by between 23 and 47 percent in the period from Dec. 2009 to June 2017, while the wholesale cost of providing these services had fallen by 27 percent.
Le Patourel pointed out that the lawsuit was mainly concerned for those customers who only have landlines through BT, who were more vulnerable to being ripped off by the company.
“Voice only customers generally do not engage with the market,” the lawsuit states.
“Seventy-seven percent of voice only customers have never switched provider or considered doing so. They tend to be older and less likely to shop around for a better deal. Over 40 percent of voice-only customers are at least 75 years old, and 40 percent live in DE socioeconomic group households.”
DE socioeconomic group households are defined as typically working in semi-skilled and unskilled manual occupations or are unemployed.
The lawsuit seeks £182m damages from BT for its alleged abuse of a dominant position from October 2015 to April 2018 for those who have a landline only.
It also seeks £287m for BT customers who got a landline and then got broadband later, but did not have the services bundled, from October 2015 to now.
On Sept. 27, the court rejected BT’s motion to dismiss, and rejected its attempt to make it necessary for customers to opt-in to the action to get any share of potential damages.
The court also added that the claim will also represent deceased people who have representatives who can accept damages on their behalf.
Do you believe BT Telecom overcharged you for its landline service? Let us know in the comments!
The plaintiff is represented by Ronit Kreisberger QC, Nikolaus Grubeck and Jack Williams of Monckton Chambers and Nicholas Bacon QC of 4 New Square, instructed by Mishcon de Reya LLP.
The BT Telecom Class Action Lawsuit is Justin Le Patourel v. BT Group PLC, Case No. 1381/7/7/21, in the Competition Appeal Tribunal.
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