THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
RETAIL INSIGHTS
RETAIL SOLUTIONS
• The HR Summit 2019
• AI in Retail Conference 2019
• Omnichannel Futures Conference 2020
• Future of Retail Marketing 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
Dixons Carphone incurs £29.1 million fine due to insurance mis-selling

The Financial Conduct Authority has fined Dixons Carphone £29.1 million after it concluded that the company’s Carphone Warehouse business did not meet expected standards for its… View Article

ELECTRICALS

Dixons Carphone incurs £29.1 million fine due to insurance mis-selling

The Financial Conduct Authority has fined Dixons Carphone £29.1 million after it concluded that the company’s Carphone Warehouse business did not meet expected standards for its Geek Squad mobile phone insurance selling processes.

The fine includes a discount for early settlement.

In a statement the FCA said: “The FCA found The Carphone Warehouse failed to give its sales consultants the right training to give suitable advice to customers purchasing Geek Squad. In particular, sales consultants were not trained adequately to assess a customer’s needs to determine whether Geek Squad was suitable. They were trained to recommend Geek Squad to customers who already had cover, for example through their home insurance or bank accounts.”

Mark Steward, executive director of enforcement and market oversight at the FCA, added: “The Carphone Warehouse and its staff persuaded customers to purchase the Geek Squad product which in some cases had little to no value because the customer already had insurance cover. The high-level of cancellations should have been a clear indicator to the management of mis-selling.

“Without whistleblowers coming forward these practices may never have come to light. In the past few years, whistleblowers have contributed critical intelligence to the enforcement actions we have taken against firms and individuals.”

During the period under investigation, which ran from 1 December 2008 to 30 June 2015, Carphone Warehouse made regulated sales of Geek Squad policies worth over £444.7 million. 

Dixons Carphone said it has worked closely with the FCA throughout the investigation and accepted that the company’s past practices “fell short”. It also said that it has made improvements to its processes including the introduction of more customer-needs assessments, improved staff training and compliance monitoring. In addition, the company has invested in customer service and post-sale customer satisfaction, and increased the number of independent financial services coaches across the Carphone Warehouse store estate.

Alex Baldock, group chief executive of Dixons Carphone, added: “We’re obviously disappointed that Carphone Warehouse fell short in the past. But we’re a very different business today; as the FCA acknowledges, we’ve made significant improvements since 2015. We’re committed to stay on that trajectory, and to make sure all customers enjoy the right technology products and services for them.”

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
CONFERENCE AIMED AT RETAILERS WORKING IN MARKETING, IT, DIGITAL, DATA AND TECHNOLOGY
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Future of Retail Marketing 2020
Future of Retail Marketing 2020
9 June 2020
Cavendish Conference Centre, London W1G 9DT
The Future of Retail Marketing for Customer Engagement