The media regulator, which was taking steps to revoke the broadcaster's licence, slammed the company for having a standard of customer service that was "severely inadequate" after it continuously refused to deal with or satisfactorily explain why it was not delivering goods to customers on time.
Auctionworld was also found guilty of misleading advertising because of the way it priced loose diamonds. This included an instance of Auctionworld claiming that diamonds were worth £14,000, when they were independently valued at just £500.
Auctionworld owes money to 17,000 customers who have paid for goods that have not been delivered and 10,000 customers are owed for returned goods that have not been refunded.
PFK was appointed as administrator yesterday, five days after Ofcom's decision to revoke the licence.
Auctionworld plans to sell off some of its assets to help pay off creditors.
Auctionworld employs 300 people and has been on the air for three years. The company already has a string of findings against it, as well as being fined £10,000 in January 2003 and Ofcom said its record was far worse than all its competitors put together.
Auctionworld acts as a shopping channel, selling high-end products such as televisions, cameras and diamonds. Although the name implies it is an auction service, it actually sells a number of goods. Viewers must dial a premium-rate phone line to make bids for the products they want to buy.
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