Ofcom has launched an investigation to find out whether Virgin Media has complied with the Consumer Rights Act in applying early termination charges to fixed-term contract customers who change address.

The move follows complaints from customers; Ofcom will now look at whether unfair terms were applied.

Under the Consumer Rights Act, where unfair terms are identified, consumer contracts aren’t binding. Ofcom also has the power to take enforcement action where unfair terms are identified.

A Virgin Media spokesperson said: “We note Ofcom’s investigation into early termination charges and will work with them during the course of their inquiry.”