Mobile phone companies banned from hiking prices mid-contract based on inflation
From subsequent 12 months, cellular phone, paid tv and broadband companies should inform clients of any worth rises on the level of sale.
The modifications, ordered by Ofcom, will come into pressure on 17 January and imply that any mid-contract worth rises have to be given “in pounds and pence” and in a “clear and comprehensible” method.
Ofcom estimated round six in ten broadband and cellular clients had been on contracts topic to inflation-linked worth rises as much as April 2024.
The new requirement follows complaints from clients about sudden worth increments in the course of the cost-of-living disaster.
Plenty of phone companies modified their contract phrases over the previous few years to incorporate inflation-linked worth modifications – on prime of a 3.9% customary improve.
Customers couldn’t precisely funds for the contracts due to the unpredictable future worth adaptions.
Cristina Luna-Esteban, Ofcom telecoms coverage director, mentioned: “With family budgets squeezed, folks have to have certainty about their month-to-month outgoings.
“But that’s inconceivable when you’re tied right into a contract the place the value might change based on one thing as exhausting to foretell as future inflation.
“We’re stepping in on behalf of phone, broadband and pay TV clients to stamp out this follow, so folks may be sure of the value they’ll pay, examine offers extra simply and reap the benefits of the aggressive market we’ve got within the UK.”
The modifications come after a regulator overview in February.
