IMPDA: Industry to clean up its act

The IMPDA believes consumers in the UK have suffered trying to claim their cashback, with companies ignoring the voluntary codes of practice it’s time for change.
 
For many years consumers in the UK have suffered at the hands of companies which have either failed to pay cashback or made consumers go through the hoops to get the money they were promised when they signed up for mobile contracts.  

Yet despite a number of high profile company collapses (with more to come) which has left thousands of customers out of pocket, there are still many companies which still don’t adhere to the networks voluntary Code of Practice or Ofcom regulations.

Sadly, the IMPDA believes that the networks have been complicit in failing to police this voluntary cashback Codes of Practice, as published on July 31st by ‘The Mobile Broadband Group’ who represent all the networks. It is they who ultimately benefit from having the consumer tied into an over-priced (against advertised prices) contract and is typical of the anti-competitive practices they engage in.  

IMPDA feels that consumers have been ill served by networks, the result of which has been tens of thousands left in debt & distressed.  Mobile Dealers who we believe trusted the networks’ encouragement of 40% redemption business models have been rewarded with collapsed businesses and broken promises.

The networks have passed the buck so fast, that they’d by guaranteed a gold medal at the 4x100m Olympics relay final!

It is therefore evident and quite clear that the networks are either unwilling or incapable of carrying out their own code of practice, and fail to enforce that Code of Practice  with dazzling regularity, and we believe they (the networks) also cherry pick as to who they decide breaches the code or not, and stop dealing with that company.

Such anti-competitive practises do nothing for consumer confidence in either Ofcom or in the industry to clean up its act. The biggest loser in this whole sorry mess is the great British public.

The IMPDA will be holding a press conference on 20th February at the Palace of Westminster at No 1 Parliament Street, London, to announce a radical solution to these issues, a solution which will change the face of mobile sales in this country forever.

It will promote better competition for dealers, reduce the risk of fraudulent sales for the networks, and of course reduce the risk of millions of pounds in unpaid cashbacks offers, reduce dealer insolvency, as well as the removal of any non-conforming dealers from both the internet and high street.  Most importantly it will give greater protection to the consumer and it is to them that all of us in the industry have the ultimate responsibility.

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