Vodafone settles legal claim with 62 former franchisees
8 reported
Vodafone has settled a long-running legal claim brought by 62 former franchisees who alleged the company unjustly enriched itself at their expense by up to £85m. The small-business owners launched the high court claim in 2024 after running up large personal debts they said were caused by their deals with the telecoms group. The former shopkeepers alleged in court papers that Vodafone unilaterally slashed sales commissions, imposed swingeing fines for minor administrative errors, and cajoled them into taking out loans and government grants. MPs compared the case to the Post Office Horizon IT scandal. In a joint statement on Thursday, both sides confirmed the 19-month court claim had been concluded without any admission of liability, and the terms of the settlement will remain confidential. Vodafone, which is valued at about £25bn on the London Stock Exchange, had previously apologized to franchisees who had a difficult experience but said comparisons to the Post Office scandal are wholly inappropriate.
What’s reported
Vodafone settled a legal claim with 62 former franchisees who alleged unjust enrichment of up to £85m.
The claim was launched in 2024 and lasted 19 months without coming to trial.
The settlement was reached without any admission of liability, and terms remain confidential.
Court papers alleged Vodafone acted in bad faith by cutting fees, imposing fines, and encouraging loans.
A July 2020 voicemail from a Vodafone executive acknowledged harm from commission changes and said franchisees had been “shanked.”
Vodafone incentivized internal security staff to increase clawbacks, including a £10,000 penalty for a mistake costing Vodafone £7.08.
Vodafone reimbursed £4.9m including VAT (£4m) across its franchise estate for fines and clawbacks.
MPs compared the case to the Post Office Horizon IT scandal; Vodafone called that comparison wholly inappropriate.
Key figures
Vodafone Ltd UK (company)
62 former franchisees (claimants)
Vodafone executive (unnamed, referenced in voicemail)
Sources: The Guardian
