Ofcom Consumer Policy Review

Issued April 19, 2006

Executive summary

BT is pleased that Ofcom is reviewing its consumer policy and is unequivocally in favour of any steps taken which further the interests of consumers and ensure that their views are taken into account.  BT has concerns about some of the proposals themselves, which will need to be addressed if the proposals are to be fully effective in furthering consumers' interests.  The key points in BT's response are as follows:

• In taking account of the consumer interest, Ofcom should ensure that it consults with a wide range of bodies to ensure a balanced perspective, and should state publicly how it has done so when setting policy - including competition policy

• Ofcom's proposed  high level objectives for consumer policy  are sensible but achievement against these objectives must be measured for them to be meaningful 

• Ofcom must have the inclination and ability to take far swifter regulatory action when consumer harm, e.g. "scams", or mis-selling are identified, despite their general "bias against intervention". BT wants to see more vigorous enforcement of fines to act as a deterrent to unscrupulous operators

• The current PASS accreditation scheme for online price comparison websites is flawed and BT is in favour of reviewing and re-launching the scheme - with major improvements. The model must be transparent and, crucially, there must be publication of the commissions earned for switching. These are hidden from consumers now.  

• BT supports the industry-led approach to the provision of quality of service information, but Ofcom should ensure that all qualifying Communications Providers are participating in the TopCom initiative as required by Ofcom's Direction. This data should also be integrated with price comparison data in a new, improved PASS scheme

• BT agrees with the proposal to publish a report on the consumer interest, but it should be published more frequently than annually. The measures reported against should be discussed further with industry and consumer organisations.

Download response as PDF document

BT would welcome any comments, which should be addressed to Theresa Brown by email to theresa.brown@bt.com.