UK green lights 'loyalty lawsuit' against UK telcos

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The Competition Appeal Tribunal (CAT) has ruled that a class action seeking up to £3.3 billion of compensation from EE, O2, Three and Vodafone can proceed.

Filed back in 2023 by self described consumer champion Justin Gutmann, the lawsuit accuses these telcos of levying unfair charges on millions of postpaid customers.

More specifically, customers who signed up for a contract that bundled the cost of a handset with the fee for using the network, and who stayed on that contract once it had expired.

Gutmann argues that the handset is paid off once the minimum term is over, and therefore the ongoing cost of the service plan should be reduced to reflect this. However, operators have allegedly not been doing this, and that is unfair.

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