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General

Ofcom releases guidance on mid-contract price rises

Wednesday 23 October 2013 | 12:10 CET | News
UK regulator Ofcom has set out a Guidance, stating that consumers and small businesses should be able to exit their landline, broadband or mobile contract without penalty if their current monthly deal goes up in cost. The Guidance will go into effect in three months and will apply to any new landline, broadband, and mobile contracts. The Guidance tells providers how to interpret and apply current telecoms sector rules in relation to price increases during fixed-term contracts. Ofcom is also confirming the cancellation rights it expects providers to give consumers following price increases. Ofcom said it will regard any increase to the monthly subscription charge as "materially detrimental" to consumers. Providers will have to give consumers at least 30 days notice before prices go up, and allow them to exit their contract without penalty. In general, any changes to contract terms or pricing must be communicated clearly and transparently to consumers. The Guidance is also not applicable to price increases outside of the core monthly subscription price, such as charges for exceeding a monthly inclusive allowance, premium rate services, non-geographic calls and directory enquiries.


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Categories: General
Companies: Ofcom
Countries: United Kingdom
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