Mobile operator Three has been fined €575,000 by communications regulator ComReg after it failed to properly notify customers about changes to their contracts.
In an information notice published on Tuesday, ComReg said the payment had been made after its investigations into the manner in which it made contract changes in March and April 2017.
ComReg also investigated conditions put in place by Three in respect of the proposed contract changes, which it said “had the effect of disincentivising customers from changing service provider”.
Three had notified all pay-as-you-go (PAYG) customers on March 3rd of changes to its terms and conditions that would come into effect on April 3rd.
The notification said that if customers wished to cancel or required further information they were to call an 1800 number.
“Shortly thereafter, ComReg consumer care received a significant volume of consumer complaints,” the regulator said.
"The nature of the complaints varied, but the majority of complainants were unhappy that they were unable to gain access to the notified 1800 number. Comreg also reviewed copies of contract change notifications that were issued by Three that purported to notify consumers of the upcoming contract changes."
Officers from ComReg used their enforcement powers to conduct an examination at Three’s headquarters in Dublin on March 14th and 15th.
It later issued the company with notices that it was not complying with regulations.
ComReg said Three had failed to properly advise its customers of the nature of the contract changes proposed, and to adequately facilitate their right to exit their contracts without penalty after they had been notified.
It also said there had been “a failure by Three to ensure that its conditions and procedures for contract termination did not act as a disincentive to consumers changing service provider”.
Three committed to refund any customer that was charged an early termination fee or any other penalty as a result of withdrawal from their contract within the prescribed 30-day window, the regulator said.
The company made a number of commitments, including that it would renotify certain customers of their contract changes that came into effect on April 3rd 2017.
It told the regulator it had also advised the customers of their right to withdraw without penalty if they did not wish to accept the changes.
The company said it would engage a third party auditor to confirm that it had adhered to the commitments.
Three also confirmed that call centres would be “fully resourced to deal with all expected call volumes on foot of any contract change notifications issued”.
ComReg said it would continue to monitor compliance with consumer rights legislation and to investigate as appropriate consumer complaints under the universal service regulations.
