BT is facing a class action lawsuit worth £600 million over claims it overcharged elderly and vulnerable customers for landline services. The claim, filed by law firm Mishcon de Reya with the Competition Appeal Tribunal, seeks compensation for up to 2.3 million customers who had only a BT landline contract without broadband or pay TV.
The legal action follows a 2017 Ofcom investigation that found BT had been charging loyal customers excessive prices. Ofcom criticised BT for raising line rental charges by 28-41% since 2009, despite wholesale costs falling by at least 25%. The regulator said customers were getting “poor value for money” and that many had been with BT for decades, often being elderly, on low incomes, or vulnerable.
In response to Ofcom's findings, BT reduced its landline prices by £7 a month (£84 a year). However, campaigners argue that customers have not been compensated for previous overcharging. Justin Le Patourel, founder of Collective Action on Landlines (CALL), said: “Ofcom made it very clear that BT had spent years overcharging landline customers, but did not order it to repay the money.” He estimates that affected customers could be entitled to up to £500 each.
BT has said it “strongly disagrees” with the claim of anti-competitive behaviour and intends to defend itself “vigorously”. A spokesman stated: “We take our responsibilities to older and more vulnerable customers very seriously… For many years we've offered discounted landline and broadband packages in what is a competitive market.” Independent telecoms analyst Ian Grant criticised BT, saying it “has a history of abusing its position” and noted that Ofcom could have ordered compensation but instead allowed a price cut.
