Protecting citizens and consumers from mis-selling of fixed-line telecommunications services

The Explanatory Statement and Notification gives effect, with modification, to the proposals set out in the November 2004 consultation document. The Notification and Schedule to the Notification, published at Annex 1, sets out the following:

• that there is an obligation upon all Providers who engage in sales and marketing of fixed-line telecoms services to establish, under set guidelines, codes of practice, and to comply with the provisions set out in those codes;
• that the requirement to establish, under set guidelines, codes of practice on sales and marketing, and to comply with the provisions set out in those codes, should be subject to a ‘sunset’ clause. The effect of such a clause is that the requirement will lapse two years after the date of introduction unless a positive need is demonstrated to reinstate the requirement;
• the guidelines for sales and marketing codes of practice for fixed-line telecoms services; and
• that there is an obligation to provide codes of practice on sales and marketing on request, and free of charge, to customers.

This measure ensures that codes of practice for sales and marketing are enforceable. Ofcom will have the power to take enforcement action against those providers who breach the provisions of their code, including ultimately imposing a financial penalty on the relevant Provider for non-compliance.