OFCOM INVESTIGATES COMMUNICATIONS CONTRACTS
February 28 2014.


Effective end January 2014, consumers and small businesses taking out new landline, broadband or mobile contracts should be allowed to exit them without penalty if their provider increases the monthly subscription price agreed at the point of sale.


This follows an Ofcom review into the fairness of contract price terms which found that many customers were caught unawares by price rises in what they believed to be fixed price contracts.

Ofcom issued new guidance for providers which took effect from 23 January 2014. It sets out that if a provider wishes to increase the monthly subscription price agreed by the customer at point of sale, customers should be given at least one month’s notice of the increase and be allowed to exit the contract without penalty.

It also states that any changes to contract terms, pricing or otherwise, must be communicated clearly and transparently.

Ofcom will monitor providers’ application of the guidance and complaints closely to assess the effectiveness of this new protection. CLICK HERE to read more.