Ofcom has launched an investigation into practices at Tesco's Telecoms unit.

The probe will examine complaints claiming Tesco broke the Ofcom Code of Practice and mis-sold its home phone service. Complaints say Tesco did not act on cancellation requests made during the 10-day period when new customers' lines were being transferred.

Tesco blamed the complaints on "a breakdown in communications with customers".

The investigation illicited schadenfreude from BT Retail operations chief John Petter, who said: "BT has highlighted the problem of mis-selling on many occasions. Over the last two years, we have received more than 373,000 complaints. The fact that customers continue to suffer from this brings shame on the telecoms industry."

Ofcom could slap tesco Telecoms with a 10 per cent fine on its total revenue if it is found to have been in the wrong. Details of the investigation, including how to complain, are here. ®

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