BT wins £1.3 billion class action lawsuit for alleged overcharging of millions of customers
BT has come out on top in a significant legal battle. The telecommunications giant successfully defended itself in a £1.3 billion class-action lawsuit that accused the company of overcharging millions of customers for fixed telephone lines. The case, which spanned eight weeks beginning in January, revolved around allegations that BT had charged excessive prices to around 3.7 million landline customers.
The dispute was resolved just last week by the Competition Appeal Tribunal, which issued a detailed 301-page verdict. Spearheaded by former Ofcom official Justin Le Patourel, the lawsuit claimed that BT had capitalized on its dominant market position to impose inflated charges, particularly targeting elderly customers. In response to the ruling, BT released a brief statement expressing its commitment to customer welfare.
The allegations against BT dated back to a nearly decade-long period from 2009 to 2017, during which customers who opted for a standalone fixed voice connection were believed to have been unfairly billed. Despite regulatory intervention by Ofcom in 2018, which led to price reductions by BT, the class-action lawsuit was filed in 2021 by Le Patourel. Ultimately, the Competition Appeal Tribunal ruled in favor of BT, stating that while the company had indeed charged excessive prices persistently, it had not acted unfairly due to its market dominance.
Justin Le Patourel, contemplating the possibility of an appeal, expressed disappointment over the tribunal’s decision. Having served at Ofcom for over a decade in various high-ranking positions, including market intelligence and consumer protection roles, Le Patourel remains a vocal advocate for consumer rights in the telecommunications sector.
