UK Officials Monitor £120m Legal Action Against Vodafone | Vodafone

Ministers are closely monitoring a court case where Vodafone is accused of “unjustly enriching” itself at the expense of franchise operators and have raised the possibility of regulatory action on the sector. Small business minister Gareth Thomas stated that he will “track very carefully” a £120m legal claim lodged against Vodafone by 62 of approximately 150 franchise operators. The franchisees allege that drastic reductions in commission rates for selling Vodafone products in high street stores caused them to accumulate significant personal debts, leading some to experience suicidal thoughts. They claim that Vodafone operated in a way that benefited itself at the expense of its franchisees. Thomas acknowledged the severity of these allegations during a parliamentary debate and the potential need for future ministerial attention to address similar issues with major corporations. Talks to settle the franchisees’ legal claim against Vodafone ended in May without resolution, suggesting the case might go to court. Vodafone has denied the claims, stating that it refutes the accusations. The company has also apologized to anyone adversely affected and maintains it has treated its franchisees fairly. Additionally, Vodafone has recently completed a bid to merge with competitor Three to form Britain’s largest mobile network, which is expected to lead to job cuts in areas of overlap but will also result in job creation and a major investment in 5G infrastructure.

Source: https://www.theguardian.com/business/2025/jul/04/uk-government-closely-watching-franchise-operators-120m-legal-claim-against-vodafone