Telecoms company Flow has acknowledged that it overcharged businesses by increasing rates without official approval, an ongoing investigation has revealed.
Flow overcharged all of its fixed-line business customers by increasing the rate from $30-a-month to $35-a-month from January 2019, without getting approval from regulator OfReg.
Restrictions in Flow’s operating licence at the time, included the legal requirement to submit proposed rate increases to OfReg for review and approval, according to a press release from the regulator.
“To protect customers and promote competition in the marketplace – for any change in rate charges, increases or decreases – FLOW was required to provide evidence and justification to the regulator, in advance,” it stated.
OfReg is continuing to investigate the pricing practices of FLOW.
“At this point in the investigation, FLOW has admitted that it failed to comply with a licence condition to seek OfReg’s approval prior to applying the increased rate, which has resulted in its business customers being overcharged by CI$4.99 per month,” the statement added.
OfReg has issued Flow with an administrative fine notice in relation to the contraventions, a process which affords the company an opportunity to provide a formal response to the allegations.
After a review of Flow’s response, OfReg will issue a decision of its final findings and any penalties.
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