Ofcom says it considers this to be a 'serious breach of the rules' and has issued TalkTalk and Tiscali UK with the fine to reflect this and to act as a deterrent to them and other telecoms companies.
The original investigation was launched in July 2010 after Ofcom received complaints from over 1,000 consumers. In November 2010 it issued TalkTalk and Tiscali UK with a legally-binding notification and both were told steps must be taken to sort out the billing problems before the 2 December 2010. However almost 3,000 consumers were still incorrectly billed after this deadline.
In its statement today Ofcom does acknowledge that the companies did take some important steps to comply with the rules, including making changes to their customer records management systems, during the period given.