Vodafone legal battle: Serious questions about telecoms giant's conduct remain, says Reform's Richard Tice
The Deputy Leader of Reform UK, Richard Tice, is among the MPs who have spoken out in support of the former franchisees who are bringing a legal claim against Vodafone.
Mr Tice, who is the Reform UK MP for Boston and Skegness, said the accounts from former Vodafone franchisees are shocking.
“Hardworking people who trusted a major British brand saw their livelihoods stripped away,’’ he said. “Serious questions about Vodafone’s conduct remain unanswered.
“That is unacceptable from any British company. Vodafone is a FTSE 100 company and must be held to the highest standards. With Vodafone now expanding control over former Three stores and businesses, proper scrutiny of its management and governance is essential.
“I and other MPs are continuing to correspond with Vodafone to establish accountability and exactly what went wrong.
“The public has a right to expect transparency, meaningful engagement and clear answers from the leadership of one of the UK’s biggest companies.”
The franchisees claim that commission payments to franchisees were cut drastically and with little or no explanation.
They also allege that Vodafone often failed to pass on rent free periods in its underlease terms to affected franchisees and charged them full rent, at a time when many of their businesses were already being squeezed and franchisees also received “illogical and bizarre fines”.
The franchisees say that this alleged conduct stands in stark contrast to how the model was promoted as a “true partnership”, and to how Vodafone continues to present the programme publicly.
A spokesperson for the group, Andrew Kerr, said after a meeting with MPs in March: “For years, Vodafone has failed to answer serious questions about what went wrong in its franchise programme.
“Now those questions will be tested in open court.
“This process will force transparency on decisions Vodafone has so far refused to properly explain, including what it knew about the disastrous impact on the small business people running its stores who were loyal and dedicated brand ambassadors for the company over so many years.”
Following the event in March, a number of MPs signed a letter to Vodafone requesting further clarification and meetings, which was later hand-delivered to Vodafone’s Paddington office by the franchisees.
Supporters say the case has also prompted wider political attention on the regulation of franchising in the UK.
Vodafone disputes its liability on all of the claims and contends that the claimants’ case is misconceived in law and/or based on misunderstandings or mischaracterisations of the facts.
A spokesman for the franchisees said this week: “Discussions have taken place between the Group and Vodafone outside of the court process, and we remain open to meaningful engagement to resolve this dispute.
“As we have consistently said, we want to avoid a lengthy court case and reach a fair resolution that allows franchisees to move on with their lives.
“We remain fully prepared to continue pursuing the case through the courts in order to secure accountability and justice for the way we have been treated by Vodafone, and the damages we are entitled to.”