FLOW facing fines for overcharging business customers

Cayman telecoms provider FLOW will face financial penalties for overcharging business customers over a three-year period.

FLOW pushed up prices for its business telephone line customers without seeking approval and then stopped providing data to the regulator after it launched an investigation.

Regulator OfReg has a mandate to monitor and approve price increases in the telecoms industry.

In an enforcement notice, issued last week, the regulator indicated that FLOW had acknowledged breaching the terms of its licence by increasing business line rates from $30 to $34.99 per month from January 2019 to April 2022 without approval to do so. 

The notice also highlights a second breach by FLOW of failing to provide mandatory data to the regulator as part of its quarterly reporting requirements.

A press release from OfReg Friday indicated the telecoms giant will face fines as a result of the finding, but did not indicate how much it would be required to pay or if there is any compensation for customers who it says were overcharged.

Executive director for the telecommunications sector Sonji Myles said in the release, “The law and the people of the country expect that all utility operators must comply with their licence obligations.

“My team is focused on ensuring the fullest compliance at all times and, where necessary, we will take fair and firm enforcement action.”

Interim CEO Peter Gough added, “OfReg will continue to investigate all and any reported or perceived compliance violations by licensees in all utility sectors to ensure that consumers are protected, competition is fair and quality of service is first class.”