Virgin being sued in High Court by Comreg over alleged flaws in contract termination procedures

Comreg maintains that Virgin Media Ireland 'failed to ensure that its conditions and procedures for contract termination did not act as a disincentive to a consumer changing service provider'. Stock picture: Julien Behal

Multimedia provider Virgin Media Ireland is being sued in the High Court by Ireland’s communications regulator over alleged flaws in its procedures for termination of contracts.

The action, lodged last week, relates to an opinion of non-compliance issued by Comreg last July and follows a period of engagement between the parties.

The case has its roots in a finding of non-compliance issued by Comreg in March of last year regarding Virgin’s obligations under the EU’s universal service regulations.

Those regulations, which date from 2011, are responsible for ensuring the provision of basic telecommunication services throughout the State, particularly in areas of the country, such as rural or sparsely populated areas, where the market might not otherwise deliver these services.

Comreg’s finding specifically stressed that Virgin had “failed to ensure that its conditions and procedures for contract termination did not act as a disincentive to a consumer changing service provider”.

In its finding, Comreg said that Virgin’s procedures meant that the vast majority of consumers seeking to cancel their deal with the company would have to call its customer service portal on 1908 in order to do so.

The regulator further cited a ‘save activity’ procedure on those 1908 calls as acting as a disincentive to customers wishing to move supplier, together with Virgin’s imposition of a 30-day notice period on people seeking to switch.

Virgin Ireland, as well as providing Ireland’s principal commercially-operated television stations, operates home broadband and telephone services in Ireland.

Responding to a request for comment regarding the legal action and its suggestion that Virgin Media had been making it difficult for its customers to switch providers, a spokesperson for the company said “we don’t agree and that is why we are contesting the case”.

Amended notification 

Following Comreg’s initial finding, the regulator subsequently amended its original notification in September of last year, again stressing that Virgin Media had in its opinion failed to ensure its that its approach to a customer ending their contract with the company would not dissuade them from seeking an alternate vendor.

Comreg said that Virgin had “stated its views” on the amended opinion last November.

Having considered Virgin’s response, Comreg said it had nevertheless arrived at the same opinion that the company had “not complied with its obligations”.

A spokesperson for Comreg said that it had decided that should Virgin’s alleged non-compliance not be “remedied” within three weeks, an application to the High Court could follow.

The application in question aims “to ensure Virgin’s compliance with its obligations” while seeking further orders against the company per the universal service regulations.

The High Court is not bound to accede any such application, and may refuse it. However, the court in its ruling can also apply a financial penalty to the company under censure.