Vodafone settles legal claim brought by 62 former franchisees
Summary
Vodafone has settled a legal claim made by 62 former franchisees who said the company unfairly took up to £85 million from them by cutting their commissions and imposing fines. The settlement ends the 19-month court case without Vodafone admitting any wrongdoing.Key Facts
- 62 former Vodafone franchisees filed a legal claim in 2024 over losses from reduced sales commissions and fines.
- The franchisees said Vodafone's actions caused them large debts and personal hardship, including stress and suicidal thoughts.
- Vodafone and the former franchisees settled the dispute after 19 months, avoiding a trial.
- The settlement terms are confidential, and Vodafone did not admit to wrongdoing.
- Allegations included Vodafone slashing commissions unilaterally and imposing large fines for minor errors.
- Vodafone apologized for the difficulties faced by some franchisees but denied profiting unfairly.
- Vodafone reimbursed £4.9 million to franchisees in compensation for fines and clawbacks.
- The company said it improved its governance and processes in response to the issues raised.
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