Market regulator Ofcom UK has accused a London-based phone and broadband provider (ISP), Continental Telecom, of using dubious tactics after consumers were switched to the service without their express and informed consent (i.e. slamming) and kept in the dark about their consumer rights. The ISP could now face a significant fine if it fails to take the appropriate action, which could be worth up to 10% of the company's turnover.


Ofcom's investigation concluded that there were reasonable grounds to believe it "misled consumers" in an effort to get them to switch from rival providers. The regulator has now issued a Notification, requiring Continental Telecom to take appropriate action to comply with its rules, including remedying any consequences arising from its breaches.

The Ofcom probe also found that Continental Telecom had:

• Used unacceptable sales tactics to get consumers to sign up to its deals;

• Failed to tell customers of their right to cancel during the switchover process.

• Abused the trust of vulnerable customers, including the elderly, people with special needs and those whose first language is not English.

• Cut customers off for alleged non-payment of bills without giving them due warning.

Continental Telecom must now comply with Ofcom's requirements within one month and it has the right during this time to challenge the findings.


The investigation itself officially began in February this year after Ofcom noticed an increase in complaints about Continental Telecom. It is however very rare to see the regulator actually putting its foot down; most operators usually move to rectify any problems when they do. In the past big names like Pipex (now defunct as part of Opal/TalkTalk) and Prodigy Internet, among others, have both fallen foul of the rules.