Dixons Carphone plc
FCA Investigation into Historic Geek Squad Mobile Phone Insurance Selling
The FCA has concluded an investigation into Geek Squad mobile phone insurance selling processes at The Carphone Warehouse Ltd that took place between December 2008 and June 2015 and has identified key areas where, in that period, the FCA has determined that the company did not meet expected standards. In concluding the investigation, the FCA has imposed a fine of £29.1m on the company, inclusive of the discount applied on early settlement.
Dixons Carphone has worked closely with the FCA throughout the investigation and accepts that in the past the company's practices fell short. As the FCA acknowledges in its decision, "Carphone Warehouse has made significant improvements to its approach to regulatory matters" since 2015.
The company has introduced more comprehensive customer-needs assessments, enhanced colleague training and compliance monitoring, invested in customer service and post-sale customer satisfaction, and substantially increased the number of independent financial services coaches across the Carphone Warehouse store estate.
The company has also voluntarily carried out two customer redress programmes, covering complaints and cancellations.
As previously disclosed, the Group took certain provisions as a charge to non-headline profits at its interims on 12 December 2018 and these were also included within the exceptional cashflow guidance given for FY19/20 at the time. As a consequence, there is no impact from today's announcement to the Group's guidance given at its trading update on 22 January.
Alex Baldock, Group Chief Executive, said:
"We're obviously disappointed that Carphone Warehouse fell short in the past. 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."
For further information
Assad Malic
Group Corporate Affairs Director
+44 (0) 7414 191 044
Amy Shields
Head of External Communications
+44 (0) 7588 201 442
Tim Danaher, Nick Beswick
Brunswick Group
+44 (0) 207 404 5959
Information on Dixons Carphone plc is available at www.dixonscarphone.com
About Dixons Carphone
Dixons Carphone plc is a leading multinational consumer electrical and mobile retailer and services company, employing over 42,000 people in nine countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.
We are the market leader in the UK & Ireland, throughout the Nordics and in Greece. With a full range of services and support, we make it easy for our customers to discover, choose and enjoy the right technology for them, throughout the life of the product. Our core multichannel operations are supported by an impressive distribution network and sourcing office in Hong Kong and a state-of-the-art repair facility in Newark, UK.
Our brands include Currys PC World and Carphone Warehouse in the UK & Ireland and iD Mobile in the UK; Elkjøp, Elgiganten and Gigantti in the Nordics; and Kotsovolos in Greece. Our Dixons Travel brand has a presence across several UK airports as well as in Dublin and Oslo, and our services are provided through Team Knowhow in the UK, Ireland and the Nordics.
