LLU consumers to be protected from mis-selling says Ofcom

Today Ofcom have announced that rules protecting consumers from mis-selling of voice and broadband services will now also cover LLU providers.

Local Loop Unbundling (LLU) technology is where a provider installs their own equipment in a BT exchange, therefore bypassing BT Wholesale and taking control of the connection between the BT exchange and the end user.

According to Ofcom:

“Mis-selling refers to inappropriate sales and marketing activities including ’slamming’, where customers can be switched from one company to another without their express knowledge and consent.

“Since May 2005 a new General Condition of Entitlement (GC 14.5) has required providers of fixed-line voice call services to establish, then comply with, a code of practice for sales and marketing in accordance with Ofcom’s guidelines. These rules were originally introduced for a two year period.”

Ofcom also said that from January to March 2007 it alone received some 1,200 complaints related to mis-selling.  Therefore it has decided that these rules will continue to apply after May 2007, and will also include providers of LLU services. 

Given that these rules are in place for normal fixed-line services, it is surprising that they were not already applied to LLU providers, however, any rules that may provide consumers with more protection against mis-selling and unscrupulous activities is welcome.

Ed Richards, Chief Executive of Ofcom, said:

“Mis-selling causes problems for consumers.  We want competition and choice to continue to grow, and we want consumers to benefit from these changes. Consumers need to be able to shop around with confidence. Extending these rules and our enforcement activity will protect consumers from inappropriate sales and marketing techniques.”