Tag Archives: The Financial Costs

The free EE Power Bar is now costing EE a bomb – The Financial Impact – Editorial

EE had a great idea. Offer its customers a free lipstick size battery power pack to all its customers so they could recharge their phones.

However, this has all gone terribly wrong for EE.

Updated 16 December 2015

We’re recalling all EE Power Bars. This is just a precaution, but we want to make sure all our customers are safe. If you have a Power Bar, you should stop using it straight away and hand it in to one of our stores.

We are taking this action because we are aware of a very small number of further incidents where Power Bars have overheated in circumstances that could cause a fire safety risk. Keeping our customers safe is extremely important to us, and that’s why we’re taking this voluntary and precautionary action.

We’ve identified a very small number of incidents where Power Bars have overheated.
What should I do? We’re asking everybody to stop using Power Bars and unplug them from their phones or tablets, and the mains. You should return the Power Bar to an EE store as soon as you can.
How do I get my £20 voucher?

When you return your Power Bar to an EE Store you will be given a £20 voucher if you are an eligible EE customer. One of the team there will give you instructions about how to claim your voucher. You’ll be able to redeem your voucher at accessories.ee.co.uk.
Where is my nearest store?

At the moment we are fully focused on the recall and we will make further announcements soon.

So this free gift now will cost EE a bomb. First of all there are all the notification costs in making sure all customers are contacted. There is then the PR costs of ensuring EE brand name does not get impacted. There is the actual financial cost of receiving and processing the faulty power bars. Next there is the cost of offering customers £20 vouchers. And with around a million customers impacted this is no laughing matter. And finally there is the product liability claims from customers that suffered injury and damage to their property.