Senior executives from telecoms giant Vodafone are set to appear before Members of Parliament next month, as scrutiny intensifies over the company's treatment of dozens of its retail franchisees.
MPs Demand Answers on Franchisee Dispute
The meeting, scheduled for 21 January, will include discussions with Reform Party deputy leader Richard Tice and other parliamentarians. It follows weeks of pressure from MPs concerned about the escalating dispute, which one prominent figure has directly compared to the Post Office Horizon IT scandal.
Sky News has learned that the FTSE 100-listed company will hold talks to address the ongoing row. This parliamentary engagement comes just weeks after government ministers signalled a potential review of the legal framework governing franchise agreements across the UK.
High Court Claim and Human Cost
The controversy stems from a High Court claim brought last year by a group of 62 Vodafone retail franchisees. They alleged that the company had "unjustly enriched" itself by slashing sales commissions paid to the small business owners operating its stores in 2020.
The human impact of the dispute has been profound and tragic. Recent reports, including from The Guardian, indicate that a number of the affected franchisees have taken their own lives or attempted to do so. This devastating consequence has added significant gravity to the calls for accountability.
In a recent development, Vodafone began offering financial settlements to some former franchisees in September. However, the company stated that a significant payment offer was rejected by the firm funding the collective claim, allegedly without being shared with all claimants.
Echoes of a National Scandal
Richard Tice, who became involved after being approached by a constituent caught up in the dispute, issued a strong statement. He said: "Vodafone's behaviour in this case has uncomfortable echoes of the Post Office scandal, where a powerful organisation is avoiding accountability while ordinary people running our high streets are left to suffer."
He emphasised that the situation was "completely unacceptable" and called on Vodafone to stop stonewalling, accept that serious failures occurred, and engage transparently with Parliament to establish what went wrong and how it will be rectified.
While welcoming the confirmation of the January meeting, Tice expressed frustration that it had taken so long to arrange. He stressed that MPs require urgent answers about Vodafone's conduct and meaningful engagement regarding the deeply troubling stories emerging from the case.
In its defence, Vodafone said in a statement: "We have tried on multiple occasions to resolve this complex commercial dispute." The company expressed disappointment that its financial offer was rejected and reiterated that it remains open to further talks. It also apologised if any franchisee had difficulty operating their business, while noting it continues to run a successful franchise operation with many current partners keen to expand.
The upcoming meeting on 21 January is now poised to be a critical moment for Vodafone, as it seeks to address parliamentary concerns and public scrutiny over a dispute with far-reaching consequences for its corporate reputation.
