The media regulator slammed the company as 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.
In outlining the steps it will take to revoke Auctionworld's licence, Ofcom clearly expressed its irritation with the company, saying that senior staff at the company had been unhelpful in answering to the regulator and that it had waited until a very late stage before it even started to develop customer relations procedures.
The only way Auctionworld can escape the revocation of its licence is by adhering to an eight-point list of directives, including reading out a statement three times a day for 21 days saying that it has been found guilty of "extremely serious" breaches. If Auctionworld fails to meet all eight points within six months it will lose its licence immediately.
The £450,000 fine will stand no matter whether Auctionworld complies with the Ofcom ruling or not.
Along with the problem delivering goods to consumers, Auctionworld has been 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 £500.
Ofcom said it had not taken the decision to revoke the licence lightly, because 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.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
.jpg)
.jpg)