Monday, January 21, 2013

Ofcom sets out proposals to tackle mid-contract price rises

Ofcom | Ofcom sets out proposals to tackle mid-contract price rises: "Of the options put forward, Ofcom’s proposed approach is to intervene to allow consumers to exit their contract without penalty if their provider introduces any price increase during the term of the contract. Alongside this, Ofcom would expect providers to be clear and upfront about the potential for price increases and of the consumer’s right to cancel the contract in the event of any price increase.
The consultation follows an Ofcom review into the fairness of certain contract terms. This review and Ofcom’s analysis of consumer complaints has identified issues concerning the clarity and effectiveness of current rules which has led to consumer harm.... Ofcom proposes to modify (General Condition 9.6) to allow consumers to withdraw from a contract without penalty, if providers increase prices during the contract term."
Note - this is in response to several major companies raising prices unilaterally to customers on 12-24 month contracts - from September 2011. The change would not take effect until June 2013 at earliest...'via Blog this'

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