Making it difficult to cancel: what the Virgin Media fine reminds us about contracts

Ofcom has fined Virgin Media £28m after finding that customers were repeatedly prevented, delayed or discouraged from cancelling their contracts.

According to Ofcom, customers trying to leave Virgin Media faced unreasonable effort, hassle and difficulty. The investigation referred to issues including unnecessary call transfers, customers being repeatedly kept on hold, pressure to stay, calls being dropped and cancellations not being properly processed.

For many people, this will not come as a huge surprise. Most of us have experienced the frustration of trying to cancel a service that was incredibly easy to sign up to, but strangely difficult to leave.

There is a useful lesson here for consumers, but also for business owners and leaders.

1. We are all consumers too

Even if you run a business, lead a team or spend most of your time thinking about commercial contracts, you still enter into contracts personally.

Broadband, mobile phones, streaming services, insurance, gyms, software, utilities, subscriptions – we all deal with these contracts regularly.

The good news is that consumers have legal protection. In regulated sectors, businesses are expected to treat customers fairly and should not put unreasonable barriers in the way when someone wants to cancel or switch provider.

That matters because the cancellation process is often where the real customer experience is revealed.

A business might have strong marketing, a polished sales journey and a simple sign-up process. But if leaving is made deliberately painful, that tells customers something very different about the business.

2. Cancellation terms are not just “small print”

For business owners and leaders, the bigger takeaway is this: cancellation terms deserve proper thought.

In commercial contracts, we often see a lot of attention given to price, payment terms, deliverables and liability. Cancellation sometimes gets treated as an afterthought.

That can create problems.

A good contract should answer practical questions such as:

• When can either party cancel?
• How much notice is required?
• Can the supplier cancel as well as the customer?
• What happens to work already completed?
• What happens to unpaid invoices?
• What happens to data, access, licences, equipment or confidential information?
• Is there a handover period?
• Are there any exit fees or minimum term commitments?

Just as importantly, the process needs to work in real life. A clause that looks fine on paper can still cause problems if the internal process is confused, inconsistent or creates unnecessary friction.

This is not just about protecting customers. It is also about protecting the business.

If the cancellation position is unclear, disputes become more likely. If the process is overly aggressive or difficult, complaints and reputational damage can follow. If the supplier’s own cancellation rights are missing, the business may find itself stuck in a relationship it needs to exit.

3. A fair exit process can still protect the business

There is nothing wrong with a business wanting to retain customers.

There is also nothing wrong with having sensible notice periods, minimum terms, payment obligations or handover arrangements.

The issue is balance.

The contract should protect the business without creating a trap for the customer. The cancellation process should be clear, fair and easy to follow. Sales and retention teams should understand what they can and cannot do. Internal incentives should not encourage behaviour that creates legal or reputational risk.

In other words, businesses do not need to make leaving difficult to protect themselves. They need well-drafted contracts, clear processes and a commercial approach that builds trust.

What should businesses check?

If you sell goods or services on contract terms, it is worth checking:

• Are your cancellation rights clear?
• Do your contracts explain how both the customer and the supplier can bring the contract to an end?
• Are notice periods, minimum terms and exit fees easy to understand?
• Does your customer journey match what your contract says?
• Are your team members trained on how cancellations should be handled?
• Could your process be seen as creating unnecessary friction or pressure?
• Have you thought about what happens after cancellation, including payment, data, access, licences and handover?

These are not just legal points. They are commercial and reputational points too.

A clear cancellation process can reduce disputes, improve customer trust and help the business avoid the kind of attention no organisation wants.

Need help reviewing your terms?

If you are not sure whether your cancellation terms are clear, balanced or practical, we can help.

At Hybrid Legal, we regularly review and draft commercial terms, customer contracts, supplier terms, subscription agreements and service agreements for growing businesses.

The aim is simple: clear contracts that protect the business, make sense to the people using them and do not create avoidable problems later.