UK’s top mobile firms face £3.3bn class action lawsuit over ‘loyalty penalties’

Campaigner Justin Gutmann alleges EE, Vodafone, Three and O2 have ‘systematically exploited millions of loyal customers’

The UK’s biggest mobile phone companies face a £3.3bn class action lawsuit alleging that long-standing customers are being ripped off by “loyalty penalties”, under which the same services are offered to new customers at a better price to lure them from rivals.

The legal action, which has been brought by the campaigner Justin Gutmann and the law firm Charles Lyndon, targets BT-owned EE, Vodafone, Three and O2, which is part of Virgin Media O2.