Allegations of Overcharging
O2, Vodafone, EE, and Three, the UK’s four largest mobile networks, are facing a landmark class action lawsuit worth £1.1 billion. The claim alleges that millions of loyal customers were systematically overcharged on bundled mobile contracts, continuing to pay inflated monthly fees even after their handsets had been fully paid off.
Between October 2015 and March 2025, an estimated 10.9 million contracts may have been affected. Instead of being moved to cheaper SIM-only tariffs once their minimum term expired, customers were left paying the same rates, effectively paying for their phones more than once.
Legal Action
• The case is led by consumer rights advocate Justin Gutmann and law firm Charles Lyndon.
• The Competition Appeal Tribunal (CAT) has certified the claim, allowing it to proceed to trial.
• It is being brought on an opt-out basis, meaning all qualifying customers are automatically included unless they choose to opt out.
• Compensation could reach up to £104 per contract if the claim succeeds.
Network Responses
• O2 welcomed the narrowing of the claim but insists the allegations lack merit.
• EE rejected the accusations and vowed to defend itself.
• Vodafone and Three expressed disappointment at the Tribunal’s decision but pledged to fight the case robustly.
Potential Impact
If successful, this lawsuit would mark one of the largest consumer compensation cases in UK telecom history. It could reshape how mobile operators handle contract pricing, ensuring customers are not penalized for loyalty once their handset costs are repaid.
