This website has been created to inform members of the public about the proposed collective proceedings related to overpayments (“Loyalty Penalties”) paid by mobile phone customers who did not immediately terminate their contract for a handset and airtime services (a “Combined Handset and Airtime Contract”) at the end of the minimum contractual term (“Minimum Term”).

The website will also form one of the ways in which Justin Gutmann (the proposed class representative) will communicate with and update affected customers included in the claims (proposed class members) of developments in the proposed claims.

The proposed claims are against the UK Mobile Network Operators or “MNOs” for short: Three, Vodafone, EE and O2 (“Proposed Defendants”).

The claims are on behalf of individuals and one person businesses who have suffered loss as a result of paying a Loyalty Penalty. This occurs at the end of the Minimum Term of a Combined Handset and Airtime Contract if customers don’t terminate their contract and continue to pay an amount in excess of the amount payable for Airtime Services despite the fact that their handset has been paid off in full.

Using our register form, you can select multiple options simultaneously to express your interest in a number of different networks.

Afterward, you will receive confirmation for the mobile network brands you have selected.

The following contracts are included in the claim:

Three:
If you have entered into a Combined Handset and Phone Contract with Three, at any time, and paid a Loyalty Penalty in excess of the comparable SIM-only price after the expiry of the relevant Minimum Term, then you may be eligible for compensation.

Vodafone:
If you have entered into a Combined Handset and Phone Contract with Vodafone, at any time, and paid a Loyalty Penalty in excess of the comparable SIM-only price after the expiry of the relevant Minimum Term, then you may be eligible for compensation.

EE (including its other brands ‘Orange’ and ‘T mobile’):
If you have entered into a Combined Handset and Airtime with EE or Orange or T-Mobile, at any time, paid a Loyalty Penalty in excess of the comparable SIM-only price after the expiry of the relevant Minimum Term, then you may be eligible for compensation.

O2:
If you have entered into a Combined Handset and Airtime contracts with O2, at any time, and paid a Loyalty Penalty in excess of the comparable SIM-only price after the expiry of the relevant Minimum Term, then you may be eligible for compensation.

A Combined Handset and Airtime Contract is a contract in terms in which a person acquires a mobile telephone (“Handset”) and agrees to make regular payments over a Minimum Term to pay for (i) a Handset; and, as part of the same contract, (ii) other services such as text messages, phone calls and data (“Airtime Services”).     

Justin alleges that these companies are dominant in a specific market and are therefore under a specific obligation not to engage in practices that would harm customers. In these circumstances, charging customers Loyalty Penalties is not just unfair but also a breach of these companies’ obligations not to harm consumers. 

Justin’s responsibilities will be to act on behalf, and in the best interest, of the proposed class members. Justin is obliged to act fairly and adequately, and to obtain the best possible outcome for the proposed class members.

Before scheduling a trial, the Competition Appeal Tribunal (the court assigned to deal with these types of claims) will first need to approve two things:

1.    That the claims are suitable to be brought as collective claims; and
2.    That Justin is the appropriate person to act as the class representative.

Should the Tribunal approve the claims as collective claims and authorise Justin to proceed, then Justin will be responsible for communicating with the proposed class members and for issuing formal notices to provide updates as to how the claims are progressing. Communication will occur via updates and announcements on this website, email updates to those who have signed up to receive them, and written notices which will be published at key points in the claim.

Justin is also supported by a consultative group, made up of industry experts, who he may consult if he wishes for advice and guidance on any issues.

Justin has instructed the law firm Charles Lyndon to represent him in the claims. Charles Lyndon is one of the UK’s leading consumer-focused litigation firms, with extensive expertise in competition law. Charles Lyndon has previously brought one of the first consumer collective claims in the UK and has vast experience of the UK collective claims regime. 

To see their website, click here. 

A collective claim (or collective proceedings) is a case brought on behalf of a group of claimants (known as a “class”) who have suffered similar losses following a breach of competition law. A class representative, such as Justin, may bring the case on behalf of the class, and works to ensure that any actions taken are in the best interest of the class.

The Competition Appeal Tribunal ("Tribunal") is a specialist tribunal based in London that covers the whole of the UK and hears disputes in relation to breaches of competition law, such as these claims.

The Tribunal publishes its Rules and Guidance, together with further information about what it does, on its website.

For more information about the Tribunal, you can view their website here. 

In “opt-out” collective claims such as these, the claims are brought on behalf of a defined group of people, but those people do not have to be personally identified.

People within the class who are based in the UK, as of a specific date that will be determined by the Tribunal, are automatically included in the collective claims unless they follow specific steps to opt-out. 

Whilst the precise class definition is subject to approval from the Tribunal, if you are based in the UK, entered into at least one Combined Handset and Airtime Contract with any of the Proposed Defendants at any time and paid a Loyalty Penalty, it is likely you will be eligible to be included in the class; unless you choose to opt-out of the proceedings.

The proposed collective claims were filed on 30 November 2023 alongside applications for a Collective Proceedings Order.

When the applications for the Collective Proceedings Order are heard by the Tribunal, they will listen to arguments as to whether a Collective Proceedings Order should be granted (known as the claims being ‘certified’) i.e., whether to approve the claims as collective claims, so that they can proceed to the next stage.

If the applications hearing is successful, the proposed collective claims will proceed to the next stage unless it is settled out of court beforehand.

If the proposed collective claim proceeds to trial, the Tribunal will decide whether to make an aggregate award of damages for all class members (i.e. compensation).

Disputes of this size generally take a few years to resolve. In order to stay up to date with developments in the claim, please register your interest. 

It is possible that settlement could take place before trial, however any settlement reached between Justin and the Proposed Defendants will need to be approved by the Tribunal, and it must be just and reasonable and in the best interest of the members of the classes.

If you meet the criteria of the classes for the proposed collective claims and are based in the UK as of a date that is yet to be determined by the Tribunal (this is called the “Domicile Date”), you will automatically be included in the collective claims if the Tribunal grants a Collective Proceedings Order (unless you opt-out of it).

The proposed classes consist of any person who:

1. entered into at least one Combined Handset and Airtime Contract with one of the Proposed Defendants (and/or any other company which was, from time to time, within the same corporate group as the Proposed Defendants), under an included brand as explained above under question 4 of “General Information”; and
2. pursuant to that Combined Handset and Airtime Contract, made one or more periodic payments in excess of the comparable SIM-only price after the expiry of the Minimum Term.

The claims are brought on behalf of "natural persons". This definition excludes any corporate entities as these would not classify as a natural person; however, any individuals or one person businesses (also known as sole traders) who use their mobile phones for both personal use and business purposes are included in the classes. 

For clarity the following entities are not included in the claim: 
i.    Limited businesses;
ii.   Partnerships;
iii.  Limited Partnerships; and 
iv.  Public Companies.

However, the following are included in the claim:
i.    Individual customers; and
ii.   Individual sole traders.

If you qualify as a class member, you do not need to do anything at this stage.
If you believe that you qualify as a class member, you may like to sign up to receive email updates on the progress of the claims by clicking here.

For non-domiciled class members (i.e. people who did not live in the UK on the domicile date, a date which will be decided by the Tribunal) you may still be part of the classes in these proposed collective claims. You just need to “opt-in” to the claims by the specified date in the Collective Proceedings Order as provided by the Tribunal. 

Information on how to opt-in will be made available on this website at a later date. Please register to stay up to date.

No money is available now and there is no guarantee that money will be available in the future. Each of the claims against Three, Vodafone, EE and O2 will have to be proven before the Tribunal, unless a settlement can be agreed.

The progress of the proceedings can take time, so please be patient. If and when money becomes available, class members will be notified about how to obtain a payment. Please register at www.loyaltypenaltyclaim.com to stay up to date. 

In the event that compensation is to be paid to the classes, subject to your eligibility, you may be required to come forward to claim your share of the compensation. Details on how to do this will become available at the appropriate time.

If you think you may be entitled to compensation, you should keep any records of your Combined Handset and Airtime Contract(s) with Three, Vodafone, EE and/or O2; invoices; payments that you have made; and any other records which you believe may be relevant. Such information may be needed as part of claiming your share of any compensation.

In addition to the types of business entities detailed above, the following are excluded from making a claim: 

a. Members and staff of the Tribunal assigned to these proceedings;

b. Officers, directors or employees of:

i. The Proposed Defendants; 
ii. any entities which have an (direct or indirect) interest in any of the Proposed Defendants or an interest in the proposed defendants that give rise to significant control; and 
iii. any entities in which any of the Proposed Defendants have such an interest.

c. Justin’s and the Proposed Defendants’ legal representatives as well as any experts or other professional advisers instructed in these proceedings, including the professional staff assisting them.

d. Justin, as the proposed class representative, has elected to exclude himself from the proposed classes.

The proposed collective claims have not been certified by the Tribunal yet. Once it has been certified by the Tribunal, any UK resident on the Domicile Date (please see question 1, under this section for an explanation of what this date is) can apply to be removed from one or more of the proposed proceedings in which you are a member of the Class(es). This website will be updated with details of how to opt out of the proceedings, once the claims have been certified. 
 
By opting out, you will not be able to receive a payment if money becomes available through one or more of the proposed proceedings. However, you may be able to bring your own separate claim(s) against the Proposed Defendants in respect of the issues raised by the proceedings. Justin is not able to advise you in respect of any separate claim(s) that you might have against the Proposed Defendants. 
 
IMPORTANT CONSIDERATION: Please note, if you opt out and then wish to bring a claim on your own against the Proposed Defendants, you must do so within six months of the date on which you opt out. If you do not file an individual claim against the Proposed Defendants within this timeframe, your claim may be time barred and not allowed. In the event that you opt out of this claim then you will need to seek independent legal advice if you still wish to pursue your claim.

You may object to the Collective Proceedings Order Applications or the authorisation of Justin as the class representative by writing to the Tribunal stating your reason for objecting by the date specified in the Tribunal’s notice.

Any member of the proposed classes may apply to make submissions either in writing or orally at the hearing of the applications for Collective Proceedings Orders. If you wish to file an objection, you must write to the Tribunal stating your reasons for objecting and send via email to registry@catribunal.org.uk or by post to the following address:

             The Registrar
             Competition Appeal Tribunal
             Salisbury Square House
             8 Salisbury Square
             London
             EC4Y 8AP

Any third party with a legitimate interest (who is not a member of the proposed classes) can also apply to the Tribunal for permission to make written and/or oral submissions at the Collective Proceedings Orders applications hearing. Any such applications must be made in writing, supported by reasons and received by the Tribunal by the date specified in the Tribunal’s notice.

Justin is working with a specialist litigation funder, LCM Funding UK Limited, to bring the claims.

Justin is seeking a total compensation sum of £2.822 billion plus interest for the proposed classes as a whole. 

Eligible class members that come forward to claim will receive their share of the compensation.

You will not incur any costs for taking part in the proposed collective claims. Neither will you be liable to Three, Vodafone, EE or O2 for their costs should the proposed collective claims be unsuccessful, as Justin has arranged “After-the-Event” insurance, which provides protection against him having to pay the Proposed Defendants’ legal costs if the claims fail.

If the proposed collective claims are successful, class members who remain part of the class (i.e. who do not opt-out) will release Three, Vodafone, EE and O2 from any other liability. You will not be able to bring any other claims on the same basis in an alternative legal action.

If you would like to receive updates on the progress of the claims, please register your interest to stay up to date.

You can also revisit this website to check for new information from time to time as it will be updated periodically.

If you have any further questions or would like any additional information, please email info@loyaltypenaltyclaim.com. 

For media information please contact: media@loyaltypenaltyclaim.com.