More than 3 million BT customers could receive up to £400 each as a class action lawsuit begins seeking £1.3bn in compensation over claims the telecoms group allegedly overcharged for landline services. The legal action, brought by former Ofcom executive Justin Le Patourel, alleges that BT used its dominant market position to charge excessive prices for landline-only customers, many of whom are elderly or on low incomes.
Le Patourel launched the claim three years ago after an Ofcom investigation in 2017 found that landline-only customers were 'getting poor value for money in a market that is not serving them well enough'. BT cut prices by £7 a month for around 1 million customers the following year but did not offer compensation for past overcharging.
Le Patourel, who formed Collective Action on Land Lines (Call) to gather customers, estimates affected customers could receive £300 to £400 depending on contract length. 'We believe BT has been systematically overcharging millions of customers over many years,' he said, noting that over 40% of claimants are aged over 70 and more than 150 die daily.
The class action automatically includes all affected customers, including those now deceased, unless they opt out. Le Patourel claims over 500,000 landline-only customers have already died. A BT spokesperson said the claim relates to a 'technical landline pricing issue resolved by Ofcom in 2017' and that the company does not accept its pricing was anti-competitive, vowing to 'robustly defend' its position at trial.
However, when Le Patourel sought permission to take BT to trial in 2021, the Competition Appeal Tribunal unanimously ruled the claim showed 'more than enough merit to be pursued', concluding there is 'a real prospect of success'. The case is now set to proceed.
