BT landline-only users await ruling on compensation case

Landline-only customers of BT are awaiting the conclusion of a tribunal hearing to find out whether a class action lawsuit can continue over an alleged £600m penalty paid for customer loyalty.

Justin Le Patourel, and the consumer group Collective Action On Landlines (Call), brought an application before the Competition Appeal Tribunal this week to take a case on behalf of 2 million BT landline customers.

The application claims that customers, generally coming from low-income and older households, are owed compensation for payments made to BT before 2018 when the firm was forced to cut landline rental charges by £7 a month.

A scathing review from regulator Ofcom highlighted the “poor value” that landline-only subscribers were getting in comparison to those buying bundles with broadband and TV, and subsequently pushed BT to slash its prices.

“The speed of this hearing suggests the Competition Appeal Tribunal is aware of the significance of this important class action. I am hopeful that I will be allowed to take the case forward, and to represent the millions of people I believe were ripped off by BT,” Le Patoruel said.

BT said the firm would “defend itself vigorously” and claimed that Ofcom had “made no finding of excessive pricing or breach of competition law more generally”.

A spokesperson for BT said: “We strongly disagree with the claim being brought against us.

“We take our responsibilities to customers very seriously and will defend ourselves against any claim that suggests otherwise.”

The spokesperson highlighted that BT has offered a discounted social tariff for many years, and it had helped 4 million households on low income save money on bills by extending the tariff this month: “We assure our customers that we will not let this claim disrupt the relationship BT has with them. We will continue to support our customers through the pandemic and beyond.”

Director of policy and advocacy at the consumer group Which?, Rocio Concha, said: “Effective collective redress is something Which? has long campaigned for, and while no claim under the regime has reached a full trial yet, it is encouraging to see this case against BT progress, and hopefully be allowed to proceed to a full trial.

“If successful, this opt-out action would be good news for many BT customers who were found to have been historically overcharged for years but saw no refund as a result.”