New Ofcom guidance comes into force today, enabling consumers and small businesses to leave their landline, broadband or mobile contracts without penalty if their service provider increases the monthly subscription price unexpectedly.
The guidance, which applies to all new contracts, also notes that customers should be given at least a month’s notice of any monthly changes.
Ofcom published its guidance in October 2013 after a review into contract terms, which found many consumers were unaware that prices could rise in fixed-term contracts. It’s now created a consumer guide to help customers before they choose a new landline, broadband or mobile phone contract.
Claudio Pollack, Ofcom’s Consumer Group Director, said “We have reached an important milestone in our work to ensure consumers and small businesses have better protection against unexpected price increases. Additionally, our new guide highlights important factors customers might want to consider before entering into a new contract to help them understand exactly what they are signing up to.”
[Ofcom guidance; Ofcom contract guide]
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