Communications regulator Ofcom has handed down a £28m fine to Virgin Media, citing evidence that the company repeatedly prevented customers from cancelling their contracts. This penalty represents the largest fine ever issued by the regulator under its consumer protection rules and stands as the third-largest in the organization’s history, following a £50m fine for Royal Mail in 2018 and a £42m fine for BT in 2017.
The investigation by Ofcom determined that millions of customer calls occurring between 1 January 2022 and 11 September 2024 were likely mishandled by call center agents. The regulator found that these actions were intended to delay or stop customers from switching to competitors. Documented tactics included excessive and unnecessary call transfers, repeated pressure on customers to remain with the provider, deliberately hanging up on callers, and keeping customers on hold for no reason.
Ofcom noted that Virgin Media utilized a two-tier system for retention agents, where only second-tier staff were authorized to process cancellations. This structure forced over a million callers to repeat their requests to additional agents. Furthermore, the regulator stated that Virgin Media’s commission scheme effectively incentivized and rewarded agents for employing these obstructive behaviors. Natalie Black, Ofcom’s group director for infrastructure and connectivity, described the company’s conduct as “pretty shocking” and noted that the firm failed to resolve the issues informally when approached in 2022. She added: “Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price.”
The regulator received 1,881 complaints from customers detailing their struggles, with some individuals resorting to cancelling direct debits—a move that subsequently damaged their credit scores. While Virgin Media has since implemented improvements to its training, monitoring, and commission structures, Ofcom plans to monitor the company closely over the next six months to ensure compliance.
A spokesperson for Virgin Media stated that the company has “completely redesigned” its customer service approach in recent years to address “historic shortfalls” through a transformational turnaround strategy. “Our customer service turnaround strategy, underpinned by significant investment, has been transformational.” Despite these changes, the firm must pay the £28m fine to the Treasury within two months. This ruling follows a separate £23.8m fine issued to Virgin Media in 2025 regarding the company’s failure to provide vulnerable customers with access to lifesaving telecare alarms during the digital switchover.
Ofcom said its rules "are clear that the conditions or procedures telecoms providers have in place must not act as a disincentive for customers who wish to cancel their contract" – and that Virgin's failings likely acted as a disincentive for customers in million of calls.
"Right at the beginning of this problem, a number of years ago in 2022, we tried to resolve this informally. There wasn't the will to do that," she said.
