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Consumer champion Justin Gutmann Announces £3 billion plus ‘Loyalty Penalty’ Class Action claim against UK’s largest mobile network operators
- Consumer champion and former Citizens Advice executive, Justin Gutmann is bringing the case against the UK’s four largest mobile phone network operators: Vodafone, EE, Three, and O2, and their respective parent companies.
- The £3bn plus claim alleges that the companies used their market dominance to overcharge on up to 28.2 million UK mobile phone contracts.
- The class action is the first to target the Major Network Operators’ practice of charging “loyalty penalties” – charging existing customers more than new customers for the same services.
LONDON, Dec. 8, 2023 /PRNewswire/ — Consumer rights champion Justin Gutmann and the law firm Charles Lyndon have today announced that class action proceedings have been launched against Vodafone, EE, Three, and O2 (the “Loyalty Penalty Claim”). The Loyalty Penalty Claim alleges the companies have been abusing their dominant positions in the UK mobile industry by charging a ‘loyalty penalty,’ in which long standing customers were overcharged for handsets beyond the end of their contractual term.
Mr Gutmann alleges the mobile operators have overcharged on up to 28.2 million contracts and, as a result, is seeking damages of at least £3.285 billion. If successful, someone who held a contract with just one of the mobile operators could receive as much as £1,823. Many consumers are expected to have claims against more than one mobile operator and so could receive even more compensation. The class actions have been filed in the Competition Appeal Tribunal in London, United Kingdom.
The Loyalty Penalty Claim is being brought on behalf of consumers who have purchased mobile contracts made up of a mobile phone and airtime services such as data, minutes and calls. When these contracts are agreed, their price during the minimum term of the contract includes both the mobile and the use of airtime services.
The Loyalty Penalty Claim alleges that the mobile network operators failed to reduce the amount charged once the minimum contractual term expired, despite the fact that consumers had already paid for their mobiles. This resulted in existing customers being charged more than a new customer would be if they were just paying for airtime services.
A typical example would be someone who agreed a two-year contract combined contract for a mobile phone and a SIM airtime services deal, paid off their mobile phone during the course of their contract, but then continued to be charged the same amount once the minimum contract term had expired, resulting in them paying far more than they would if they were a new customer on a SIM only deal.
Most customers of these mobile network operators who made payments after the expiry of their contractual minimum term are included in the Loyalty Penalty Claim, which is being conducted on an “opt-out” basis. This means that the claim is brought on behalf of a defined group of people, but those people do not have to be personally identified. All qualifying consumers will be automatically included in the Claim for free unless they follow specific steps to opt out. Mr Gutmann is encouraging consumers to visit the dedicated Loyalty Penalty Claim website so they can be kept updated on the progress of the claim.
The Loyalty Penalty Claim follows a rare super-complaint from Citizens Advice to the Competition and Markets Authority (“CMA”) in September 2018. The CMA found that: “We do not consider that providers should continue to charge customers the same rate once they have effectively paid off their handsets at the end of the minimum contract period. This is unfair and must be stopped.” They also added that customers “rightly feel ripped off, let down and frustrated”.
Justin Gutmann said: “I’m launching this class action because I believe these four mobile phone companies have systematically exploited millions of loyal customers across the UK through loyalty penalties – taking over £3 billion out of the pockets of hard working people and their families. These companies kept taking advantage of customers despite the financial crisis of 2008, Covid and now the cost of living crisis. It’s time they were held to account.”
Justin added: “If our claim is successful, it will finally stop these firms from taking advantage of their loyal customers and stop the immoral practice of loyalty penalties.”
To learn more or to opt-out of the Loyalty Penalty Claim class action, visit www.LoyaltyPenaltyClaim.com
ABOUT JUSTIN GUTMANN
Justin Gutmann is the former Head of Research and Insight at the UK’s statutory consumer champion Citizens Advice. He is still committed to representing consumers and protecting their rights. He has been authorised by the Competition Appeal Tribunal as class representative to represent rail users who he believes have been overcharged by a number of rail companies. This case is proceeding to a full trial where, with the help of Charles Lyndon, he will argue that millions of rail users should be compensated.
ABOUT CHARLES LYNDON
Charles Lyndon is a litigation firm based in London. Charles Lyndon’s specialist litigation lawyers are experienced in representing claimants in high profile claims before the Competition Appeal Tribunal. They have acted in a broad range of class action and competition law cases and are at the forefront of the collective proceedings regime.
NOTES TO EDITORS
The estimated loss across all mobile network operators since 2007 is estimated at £3.285 billion including simple interest. If distributed evenly, contract holders from the mobile network operators listed below are estimated to receive the following amounts:
- Vodafone – up to £1,823 (including simple interest)
- EE (BT Group Plc) – up to £1,101 (including simple interest)
- Three (Hutchinson 3G UK Limited) – up to £1,817 (including simple interest)
- O2 (Telefonica UK Limited) – up to £1,178 (including simple interest)
Logo – https://mma.prnewswire.com/media/2294358/Charles_Lyndon_Logo.jpg
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President Emmerson Mnangagwa met this week with Zambia’s former Vice President and Special Envoy Enoch Kavindele to discuss SADC’s candidate for the AfDB
President Mnangagwa, who is SADC Chairperson, reaffirmed his own country’s and SADC’s enthusiastic support for Zambian candidate Sam Maimbo
LUSAKA, Zambia, Dec. 20, 2024 /PRNewswire/ — Special Envoy Kavindele released the following statement following the meeting:
“I am elated to witness the growing success and momentum of Sam Maimbo’s candidacy to become the next President of the African Development Bank. I am filled with gratitude to our friends across both SADC and COMESA for their continued support and good wishes.
Sam has garnered such wide consensus due to his being uniquely qualified to deliver the transformative change and empowerment our continent needs. Sam’s 30 years in development work is defined by driving outcomes, improving processes, and investing in people. The AfDB needs a hands-on leader who is laser focused on delivering results and who is unafraid of making tough decisions in order to best serve our continent. Sam is that leader. Sam has the track record and experience to drastically enhance the pace, scale, and impact of the Bank’s work in service of the people and governments of Africa.
Our region has a proud history of supporting fellow Southern Africans. For example, we all recall Lusaka’s role in hosting the African National Congress’ headquarters during the dark days of Apartheid oppression.
It therefore gives me no pleasure to observe my South African brothers, who have themselves leant on Zambia’s steadfast friendship over many decades, fail to rally behind both SADC and COMESA’s chosen candidate for the AfDB. Africa’s urgent economic development challenges demand transformational leadership at the AfDB, it is all of our responsibility to put forward the best candidate for the job. This is not the time or place for a government to act with narrow self-interest, we all must act in the continent’s and AfDB’s best interest.
I thank Sam Maimbo for his lifelong service to our entire continent, and I am eager to witness his enormous impact as President of the AfDB.”
LONDON, Dec. 20, 2024 /PRNewswire/ — Heimdal Security shares a practical holiday cybersecurity checklist, offering expert insights to help businesses safeguard against cyber threats this festive season.
With reduced staffing, remote work setups, and a surge in online shopping creating heightened vulnerabilities, this guide offers actionable tips to enhance business security.
Going beyond basic advice, the checklist also highlights the most common holiday scams and features videos showcasing real-life examples of Christmas-themed cyber scams and effective prevention strategies.
Key Tips to Protect Businesses This Holiday Season:
- Strengthen endpoints: Ensure devices are updated with antivirus and endpoint protection software; consider Endpoint Detection and Response (EDR) and application whitelisting.
- Prepare for phishing spikes: Train staff to identify suspicious emails, enforce robust email filters, and establish protocols for reporting unusual activity.
- Secure remote access: Mandate VPN usage, monitor unusual logins, and deactivate inactive accounts temporarily.
- Segment and shield networks: Isolate sensitive areas, deploy DNS security and advanced firewalls, and maintain full visibility over network traffic.
- Apply timely patches: Regularly update all systems and test patches in a controlled environment to minimize disruptions.
- Mitigate supply chain risks: Assess vendors thoroughly and limit their access to essential systems.
- Have a response plan ready: Tailor incident protocols for the holidays, create an on-call rotation for the IT team, and enable rapid action against suspicious activity.
“ Cybercriminals thrive on holiday distractions, but with proactive measures like phishing training, secure endpoints, and network segmentation, businesses can stay ahead of potential threats,” said Alex Panait, System Administrator at Heimdal Security.
Common Holiday Scams That Businesses Should Watch For:
Cybercriminals often tailor their tactics to exploit the festive season. The most common scams include:
- Spear phishing: Emails disguised as holiday bonuses or event invitations that steal credentials or spread malware.
- Malicious holiday E-Cards: Festive greetings that contain links deploying ransomware or spyware.
- Fake E-Commerce sites: Fraudulent websites offering discounts to steal payment information.
- Insider threats: Distracted or disgruntled employees mishandling or exploiting sensitive data.
- Corporate travel scams: Fake booking platforms targeting business travelers.
- Business email compromise (BEC): Fraudulent requests for urgent wire transfers during year-end financial rushes.
For more, read the full article here or watch the video on YouTube to see how these threats unfold and learn actionable prevention strategies.
About Heimdal:
Established in Copenhagen in 2014, Heimdal® empowers CISOs, security teams, and IT administrators to improve their security operations, reduce alert fatigue, and implement proactive measures through a unified command and control platform.
Heimdal’s award-winning cybersecurity solutions span the entire IT estate, addressing challenges from endpoint to network levels, including vulnerability management, privileged access, Zero Trust implementation, and ransomware prevention.
For further press information:
Madalina Popovici
Media Relations Manager
[email protected]
View original content:https://www.prnewswire.co.uk/news-releases/stay-cyber-safe-this-holiday-season-heimdals-checklist-for-business-security-302337465.html
Fintech PR
According to Tickmill survey, 3 in 10 Britons in economic difficulty: Purchasing power down 41% since 2004
The people who have the most problems are women (30%) and are between 35 and 49 years old (39%)
ROME, Dec. 20, 2024 /PRNewswire/ — The purchasing power in the UK has dropped by 41% over the last 20 years. Today, £100,000 left in a bank account since 2004 without being invested would now be worth £59,021.
This figure is one of the findings from a study conducted by Tickmill, an international online trading broker that compared the economic situation in the UK and the European Union through the infographic “Purchasing Power and Cost of Living: UK vs EU”.
The analysis reveals a slight decline of 0.4% in the UK’s purchasing power, which currently stands at £41,573. In contrast, the European Union has seen a modest rise of 0.1%, reaching £40,874.
Why is purchasing power declining in the UK? One key factor is the cost of living. If the UK were still part of the European Union, it would rank as the fifth most expensive country, behind Ireland, Luxembourg, Denmark, and the Netherlands.
Unsurprisingly, 3 in 10 Britons are struggling with the cost of living. Women (3 in 10, compared to 25% of men), those aged between 35 and 49 (4 in 10), households earning less than £15,000 (6 in 10), and single parents (1 in 2) are among the most affected groups.
Among UK nations, Northern Ireland is the hardest hit, with 34% of its population facing financial difficulties, followed by Wales (31%), England (28%), and Scotland (22%). In England, the North East has the highest percentage of people struggling, with 4 in 10 residents affected. Even in London, the high costs impact 1 in 4 adults.
In response to these challenges, Britons are making significant adjustments:
- 53% have cut back or delayed spending on smaller items like eating out, entertainment, subscriptions, clothing, toys, books, etc.;
- 52% have reduced household energy consumption;
- 48% have decreased their grocery spending;
- 41% have scaled back or postponed major expenditures, such as holidays, cars, and weddings;
- 26% are working longer hours, taking on overtime, or pursuing additional jobs to earn extra income.
The British also made changes on the financial side. One in four adults has been forced to dip into their savings or investments to cover daily expenses. Moreover, 44% have stopped saving or investing entirely or have reduced their savings and investments—a 4% increase compared to 2023.
The lack of investment is another critical factor contributing to the decline in purchasing power. It is estimated that 13 million UK residents hold £430 billion in cash deposits but do not invest. The reasons? Seventy-four percent say they cannot compare investment products effectively, and 43% are afraid of losing their money.
A lack of knowledge and fear are preventing many savers from taking advantage of an important opportunity: preserving or increasing their purchasing power in the long term.
Photo: https://mma.prnewswire.com/media/2586123/Tickmill.jpg
Logo: https://mma.prnewswire.com/media/2586129/Tickmill_Logo.jpg
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