“The matrix did not appear to discriminate between small stores and much larger outlets situated on bustling high streets or in busy shopping centres, which were likely to attract higher numbers of customers, complaints and commissions – and, consequently, fines.”

“Some of the larger Vodafone franchise stores are understood to have earned commissions anywhere between £40,000 and £100,000 a month.”

“The document also gives examples of possible offences that could lead to a franchisee being fined including “not checking [a] customer’s delivery address”, “providing incomplete information that leads to a customer coming back” and “not applying the correct plan or discount”.”

“Clawbacks form only a small part of the high court claim, with the most significant area concerning an allegation Vodafone imposed “an inexplicably drastic and patently irrational and/or arbitrary cut to the claimants’ commission” when it “very substantially [preferred] its own interests without any or any proper justification, analysis, and/or process”.”

“A spokesperson for Vodafone, which continues to contest the high court claim, said: “We conduct regular audits across our retail estate to ensure regulatory compliance and that our customers receive the service they deserve. On occasion, we have issued penalties to ensure these obligations are met.””

““Fines and clawbacks are not in place to generate profit. They are designed to discourage behaviours which could lead to poor customer outcomes and regulatory non-compliance. We continue to run a successful franchise business in the UK with over 350 stores, and the majority of our partners have expanded their business with us.””