Virgin Media fined record £28m for stopping customers cancelling contracts

Ofcom has fined Virgin Media £28m for systematically preventing customers from cancelling their contracts, the largest penalty the regulator has issued under its consumer protection rules. [1] The investigation, prompted by almost 2,000 customer complaints, found that millions of calls between January 2022 and September 2024 were likely mishandled by retention agents to delay or block cancellations. [1] Tactics included deliberate call-dropping, unnecessary transfers, and placing customers on hold for “no reason.” [1] The fine was reduced by 30% after Virgin Media admitted the failings and agreed to settle. [1] Ofcom, the government-approved regulatory authority for the UK’s communications industries, has a statutory duty to protect consumers and promote competition. [3] Natalie Black, a director at Ofcom, said the company initially “did not fully cooperate with our investigation.” [1] “Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price,” she added. [1] The regulator found that a commission scheme “effectively encouraged” and financially rewarded agents for the behaviour. [1] Virgin Media, which provides telephone, television, and internet services and is owned by the Virgin Media O2 joint venture between Liberty Global and Telefónica, has since made changes to its commission structure, training, and quality assurance. [2][4] Ofcom has ordered the company to verify within six months that every affected customer who complained has received appropriate compensation or remedies. [1] A Virgin Media spokesperson said the company had “completely redesigned” its customer services and resolved all formal complaints from the period, providing redress where appropriate. [1] The company noted that Ofcom’s latest data showed it now had the fewest complaints among broadband providers. [1] The penalty follows a separate £23.8m fine issued last December after Ofcom found Virgin Media had put thousands of vulnerable people “at risk of harm” during a digital landline switchover. [1]