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Beware subscription businesses: what Ofcom's £28 million penalty means for CMA ...
Ofcom issued a £28 million fine against Virgin Media for systematically obstructing customer cancellations through two-tier call processes, excessive holds, and agent commission schemes designed to retain customers. The case offers a regulatory blueprint for the CMA's enforcement of new subscription rules launching spring 2027, which will cover millions of non-telecoms subscriptions from gyms to antivirus software.
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The Wire takeaway
If your subscription business relies on call-centre friction to block cancellations or uses agent commission to push retention, the CMA now has a £28 million penalty template and will enforce it from spring 2027 – rewrite your cancellation path to automated online before then. The fine was 30% discounted for admission; repeat offenders get uplift.
Read the full story at lewissilkin.com →
Topics: Enterprise Software · subscription-enforcement · cma-penalties · cancellation-friction · customer-retention · regulatory-precedent