Virgin Media hit with £24m fine for endangering at-risk customers

Virgin Media has been penalized with a £23.8 million fine for failing to provide essential telecare alarms to thousands of customers during the transition to digital services.

The telecommunications regulatory body Ofcom imposed the fine after determining that the company neglected to safeguard vulnerable users, particularly the elderly and disabled, throughout the changeover from analogue to digital.

The industry is currently shifting landline services from the obsolete analogue system to a more modern digital framework. Ofcom has described the existing copper network as being “past its useful life and increasingly unreliable.”

In light of the transition, Virgin Media acknowledged that they did not manage the process flawlessly. However, they also stated that they have initiated “a thorough set of improvements” aimed at ensuring better service for their customers.

Concerns over Safety of Telecare Users

Ofcom expressed serious concerns regarding telecare users potentially left without service during the switch, indicating that “any interruption to their device’s connectivity could result in significant safety issues.”

Telecare devices generally function by utilizing an emergency button that, when activated, automatically contacts emergency services or caregivers through the user’s landline.

The regulator’s inquiry revealed that during the digital transition, Virgin Media failed to effectively identify telecare clients, leaving many without proper assistance.

As a result of their oversight, thousands of users ended up with devices disconnected from alarm monitoring centers.

Impact on Vulnerable Customers

The investigation found that the company’s handling of telecare customers, particularly in disconnecting individuals who failed to engage in the transition, placed vulnerable customers “in direct jeopardy of harm.”

Neither Ofcom nor Virgin Media has disclosed how many customers were impacted or the duration of the risk period.

The firm proactively reported itself to Ofcom following a number of significant incidents that arose during the migration of telecare clients in late 2023.

Ofcom stated that the £23.8 million fine accounts for the vulnerable nature of the affected customers, the prolonged period they were in danger, the severity of the breach, and the serious potential consequences.

This fine ranks as the third largest penalty imposed by Ofcom, following a £50 million fine for Royal Mail in 2018 for competition law violations, and a £42 million fine against BT in 2017 for delays in high-speed line installations.

Ofcom’s enforcement director, Ian Strawhorne, commented: “It’s unacceptable that vulnerable customers were put at direct risk of harm and left without appropriate support by Virgin Media during what should have been a safe and straightforward upgrade to their landline services.”

He added that today’s fine serves as a clear message to companies that failing to protect vulnerable customers can lead to significant enforcement actions.

Despite the issues, Virgin Media mentioned that the majority of transitions from landline to digital had been successfully completed “without problems.”

A company representative stated: “We acknowledge that we didn’t manage everything perfectly and have since rectified the migration issues highlighted by Ofcom. Customer safety remains our primary concern, and following a comprehensive review initiated in 2023, we have already rolled out a wide range of enhancements and additional support for vulnerable users, which includes improved communication, further in-home assistance, and thorough post-migration checks. We are also collaborating with the industry and government on a joint national awareness campaign.”