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Ofcom has imposed a £28 million fine on Virgin Media for repeatedly obstructing customers attempting to cancel their contracts. The communications regulator revealed that millions of customer calls were “likely mishandled” over nearly three years, leading to delays or prevention of customers switching to better deals. Among the tactics uncovered were call agents intentionally hanging up on customers and placing them on hold without justification.
Virgin Media admitted to its misconduct and agreed to settle the case, which resulted in a 30% reduction of the penalty. The company issued an apology to “the small proportion who experienced an issue when contacting us to agree a new deal or cancel their service in the past.” Ofcom described this fine as the largest it has ever issued under its consumer protection rules and the third largest penalty overall. For context, the regulator’s highest fine was £50 million against Royal Mail in 2018 for competition law violations, followed by a £42 million fine for BT in 2017.
The investigation by Ofcom found that between 1 January 2022 and 11 September 2024, Virgin Media agents mishandled millions of calls in a manner intended to delay or prevent customers from canceling and switching to competitors. This included excessive call transfers, pressuring customers to stay, hanging up deliberately, and prolonged unnecessary hold times. Ofcom also pointed out that Virgin Media’s commission structure incentivized agents financially to engage in these obstructive behaviors. The regulator emphasized that telecom companies’ policies must not create barriers that deter cancellations, yet Virgin’s actions likely did just that in millions of calls.
Natalie Black, Ofcom’s group director for infrastructure and connectivity, described Virgin Media’s conduct as “pretty shocking” and emblematic of “poor behaviour.” She explained that informal attempts to resolve the issue in 2022 failed due to a lack of cooperation. Black stated: “The facts are clear. Virgin Media made it harder for customers to cancel their contracts and then did not fully cooperate with our investigation.” She warned that providers acting against customers’ interests will face severe consequences, adding, “Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price.”
Ofcom received complaints from 1,881 customers who experienced difficulties canceling their contracts, with some resorting to canceling direct debits, which then caused missed payments and damaged credit ratings. Black highlighted new safeguards introduced to prevent such problems, including the 2024 launch of the “One Touch Switch” system designed to simplify switching broadband or landline providers.
The regulator’s findings also noted Virgin Media operated a two-tier retention agent system, where only second-tier agents were authorized to process cancellations. This setup forced over a million customers to repeat their cancellation requests to additional agents. Virgin Media has since made improvements in its commission system, employee training, quality assurance, and monitoring processes. A spokesperson for Virgin Media stated the company had “completely redesigned” its customer service, addressing “historic shortfalls” through various enhancements. They added, “Our customer service turnaround strategy, underpinned by significant investment, has been transformational.” According to Ofcom’s recent data cited by the spokesperson, Virgin Media is now the broadband provider with the fewest complaints, and specific complaints about “difficulties leaving” dropped by 89% last year compared to 2023.
Over the coming six months, Ofcom will closely monitor Virgin Media to ensure the company resolves customer issues effectively. Virgin Media is required to pay the fine within two months, with the funds going to the Treasury. Previously, in 2025, Virgin Media was fined £23.8 million by Ofcom for leaving thousands of customers without access to lifesaving telecare alarms during the digital switchover
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