The UK telecoms regulator, Ofcom, announced that it has fined broadband provider BT, along with its subsidiaries EE and Plusnet, £2.8m for failing to provide clear and simple contract information to 1.1 million customers before they signed up for new deals.

These rules require broadband and mobile operators to provide a concise, one-page summary of the main contract terms, including how any price increases might affect the customer’s payment.

The aim of these measures was to help consumers avoid unexpected price hikes, particularly during times of financial strain.

The summary also had to include key information about broadband speeds, pricing, contract length, and conditions for early termination.

Ofcom found that since the introduction of these rules, EE and Plusnet had made over 1.3 million sales without providing the necessary contract information. This oversight affected at least 1.1 million customers, as some purchased multiple services.

Following discussions with Ofcom, BT contacted 1.1 million customers between June and September 2023 to inform them of the missing information and offered them the option to request the information or cancel their contracts without charge.

However, some customers had already left BT and paid early exit fees, which they should not have been required to pay under Ofcom’s rules.

Ofcom’s investigation revealed that some BT sales channels remain non-compliant. Consequently, BT must amend these processes and ensure all customers receive the correct information within three months.

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“For people to take advantage of the competitive telecoms market here in the UK, they must be able to shop around with confidence,” said Ian Strawhorne, Ofcom’s enforcement director.

“When we strengthened our rules to make it easier for consumers to compare deals, we gave providers a strict timeline by which to implement them. It’s unacceptable that BT couldn’t get its act together in time, and the company must now pay a penalty for its failings.

“We won’t hesitate to step in on behalf of phone and broadband customers when our rules to protect them are broken.”

BT has four weeks to pay the fine, which will be passed on to HM Treasury.

The company has also agreed to identify and refund any affected customers who were wrongly charged early exit fees and contact any remaining affected customers within three months to provide the required contract information and offer the right to cancel their contracts without charge.