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Cayman: OfReg investigation finds FLOW overcharged business customer

OfReg is investigating the pricing practices of telecommunications service provider FLOW. It has, so far, confirmed that FLOW overcharged all its fixed line business customers from January 2019 onwards, by applying an unapproved rate increase from CI$30.00 to CI$35.00 per month.

Restrictions in FLOW’s operating licence at the time, included the legal requirement to submit proposed rate increases to OfReg for review and approval. To protect customers and promote competition in the marketplace – for any change in rate charges, increases or decreases – FLOW was required to provide evidence and justification to the regulator, in advance.

At this point in the investigation, FLOW has admitted that it failed to comply with a licence condition to seek OfReg’s approval prior to applying the increased rate, which has resulted in its business customers being overcharged by CI$4.99 per month.

OfReg has issued FLOW with an Administrative Fine Notice in relation to the contraventions, a process which affords Flow an opportunity to provide a formal response to the allegations. After a review of FLOW’s response, the Office will issue a decision of its ultimate findings, which will include any appropriate penalties. OfReg will also consider other appropriate directives to be issued to FLOW. The final determination and agreed course of action will be published by OfReg as soon as it is available.

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