Ofcom fines Virgin Media £23.8 million for putting vulnerable customers at risk of harm

Ofcom has fined Virgin Media £23.8 million, after it disconnected telecare customers during its programme to migrate customers to digital landlines.

Landline phone calls have traditionally been delivered over a copper-based network known as the public switched telephone network (PSTN). This network is beyond its intended lifespan and is becoming increasing unreliable, so needs to be upgraded.  

The industry-led process of transitioning customers from analogue to digital landlines is a necessary and important step in ensuring modern, reliable and resilient home phone services in the UK. But Ofcom has been clear that, during this migration process, telecoms companies must ensure they identify, protect and support vulnerable customers.

Migration of customers with telecare alarms must be undertaken with appropriate care and tailored support, as any disruption to their device’s connection could have material impacts on their safety.

Virgin Media notified Ofcom about a number of serious incidents related to the migration of telecare customers in November and December 2023. As a result, Ofcom launched an investigation to establish whether the company had failed to comply with its duties to treat vulnerable customers fairly.

Ofcom’s investigation uncovered serious systemic failures in Virgin Media’s migration process between August 2022 and December 2023. In summary:

1. Virgin Media failed properly to identify and record the status of telecare customers, resulting in significant gaps in the screening process. This meant that those affected did not receive the appropriate level of tailored support through the migration process. 
2. Virgin Media’s approach to disconnecting Telecare customers who did not engage in the migration process, despite being aware of the risks posed, put thousands of vulnerable customers at a direct risk of harm and prevented their devices from connecting to alarm monitoring centres while the disconnection was in place.

As a result, Ofcom have concluded that Virgin Media failed to comply with its own policies and procedures for the fair and appropriate treatment of vulnerable consumers – and in doing so broke Ofcom’s consumer protection rules.

As a result of Virgin Media’s serious failures, Ofcom has fined the company £23,800,000, which will be passed on to HM Treasury.