Dixons Carphone has been given a £29.1 million fine for training staff in “spin selling”.
Handed to the retail giant by the Financial Conduct Authority (FCA), the fine relates to the mis-selling of its geek Squad services.
The ‘Geek Squad’ is a mobile phone insurance and technical support service, but the retailer has been accused of training staff at its Carphone Warehouse business in selling to customers who already had insurance cover.
According to Retail Gazette, the FCA said the retailer “failed to properly investigate and fairly consider customer complaints”.
It also noted that despite Carphone Warehouse making sales of more than £444.7 million from Geek Squad between 2008 and 2015, 35% of the insurance policies were cancelled in the first three months.
The retailer says it has made improvements since in response to the FCA.
“We’re obviously disappointed that Carphone Warehouse fell short in the past,” Dixons Carphone chief executive Alex Baldock commented. “But we’re a very different business today; as the FCA acknowledges, we’ve made significant improvements since 2015.
“We’re committed to stay on that trajectory, and to make sure all customers enjoy the right technology products and services for them.”