Vodafone executives are set to face parliamentary scrutiny next month over claims of mistreatment of franchise owners operating its stores.
The decision follows reports of suicide and attempted suicide among individuals who entered agreements to run outlets for the £18bn telecoms firm.
The case has prompted discussion of potential government intervention to address perceived power imbalances in franchise agreements.
In 2024, 62 former Vodafone franchisees filed a high court claim, accusing the company of being “unjustly enriched” after reducing sales commissions in 2020.
Court documents allege Vodafone acted in “bad faith,” imposed substantial fines for minor errors, and encouraged franchisees to take loans and government grants to remain operational.
The claimants reported being left with significant personal debt as a result.
MPs representing affected constituents – including Sir John Hayes, Luke Akehurst, and Reform UK deputy leader Richard Tice – have pressed Vodafone to appear in Westminster for months.
The scheduled meeting on 21 January will allow parliamentarians to question the company on the escalating dispute.
Vodafone said it has “tried on multiple occasions to resolve this complex commercial dispute.”
The company added: “We offered to make a significant payment which we believed would ensure no claimants had debts associated with their franchise.
We remain open to further talks and are sorry if any franchisee had difficulty in operating their business.”
In September, Vodafone offered financial settlements to some former franchisees outside the legal claim group, launching its fourth investigation into the franchise division.
The firm has apologised to claimants who linked company pressure to suicidal thoughts.
A 2020 survey of franchisees revealed 78 out of 119 left critical comments about the mental health impact of Vodafone’s practices.
A Vodafone UK spokesperson stated: “While we are sorry if any partners have had a difficult experience, we reject any suggestion that our franchisees were put under undue pressure.
We continue to run a successful franchise operation, and many of our existing franchisees have expanded their business with us by taking on additional stores.
We encourage everyone to raise issues, and we will always seek to resolve them, and we remain open to further discussions with claimants to resolve the commercial dispute.”
The company categorically denied any claims that it knowingly or recklessly pressured franchisees.
