Vodafone executives are set to face a parliamentary grilling next month over the company's treatment of dozens of business owners who ran its branded stores.
Parliamentary Scrutiny Follows Guardian Investigation
The meeting, scheduled for 21 January, follows a Guardian investigation that reported claims of suicide and attempted suicide among individuals who had agreed to run outlets for the £18bn telecoms giant. This report has prompted suggestions that the government may need to consider new laws to address the power imbalance often found in franchise agreements.
A group of 62 former Vodafone franchisees brought a high court claim in 2024. They allege the company "unjustly enriched" itself in 2020 by drastically slashing sales commissions. Court documents claim Vodafone acted in "bad faith" by unilaterally cutting fees, imposed fines of thousands of pounds for minor administrative errors, and then pressured owners into taking out loans and government grants to survive, leaving them with massive personal debts.
MPs Demand Answers on Behalf of Constituents
MPs representing constituents involved in the case have been pressing the company for a Westminster meeting for months. This cross-party group includes former Conservative minister Sir John Hayes, Labour's Luke Akehurst, and Reform UK deputy leader Richard Tice.
In response to the escalating row, a Vodafone spokesperson stated: "We have tried on multiple occasions to resolve this complex commercial dispute. We offered to make a significant payment which we believed would ensure no claimants had debts associated with their franchise. We remain open to further talks and are sorry if any franchisee had difficulty in operating their business."
Apologies and Ongoing Investigations
The company has apologised to claimants who said pressure from the telecoms group triggered suicidal thoughts. A survey of franchisees in September 2020 saw 78 out of 119 leaving overwhelmingly critical comments about the effects on their mental health.
In September, Vodafone began offering financial settlements to some former franchisees not part of the legal claim, as it launched its fourth investigation into its franchising division.
A Vodafone UK spokesperson added: "While we are sorry if any partners have had a difficult experience, we reject any suggestion that our franchisees were put under undue pressure... We wholly reject any suggestion that we knowingly or recklessly or negligently put anybody involved with its franchise stores under unreasonable pressure."
The outcome of the meeting with MPs on 21 January will be closely watched, as it could influence future regulation of franchise agreements across the UK.
