Telecoms firms that hike prices on telephone, mobile or broadband services will have to let mid-contract customers leave without charge under new rules announced today. Regulator Ofcom is asking companies to be ‘clear and upfront’ about potential price rises and the customer’s right to cancel if costs do go up. Ofcom hopes the new rules, which are still subject to consultation, will help ‘address consumer concerns that it is unfair that providers are currently able to raise prices, while they themselves have little choice but to accept the increase or pay a penalty to exit the contract.’
Under current rules providers are required to give at least one month’s notice of any change and are only have to let customers leave, without a fee, if the rise is of ‘material detriment’. However, ambiguity around this phrase has led a handful of providers to impose price rises or changes in contracts, without allowing customers the option to leave.....More on this story here: Ofcom to force telecoms firms to let customers leave for free over mid-contract price rises