Ofcom announce new rules to protect customers from mid-contract price increases
Today, Ofcom has announced new rules which will prevent carriers in the UK to increase their prices mid-contract; or risk allowing the customer to waiver their contract without a penalty fee. This rule extends to all mobile, landline and broadband firms and would be a welcome addition to protect customers who have signed up for a fixed price on their contracts.
This was done to prevent different interpretations of the existing policy, where currently many firms increase their prices in line with inflation but just under the legal threshold where it invokes a penalty. If prices were increased too high, then under the current ruling you are allowed to leave without paying the remainder of the contract, plus a fee. Obviously companies are well aware of this so for the past few years they have been slowly increasing the total costs of their contracts via a loophole.
Ofcom has ruled that this is unfair and that when a customer signs up for a contract for a set price, then it should remain at that price for the whole duration of said contract. This is good news for the consumer as a whole but sadly it will not take effect until three months from now., any contract signed prior 23rd April will be exempt from the new ruling.