Relevant companies have nine months to update their systems and must start sending out the notifications from 15 February 2020. Service providers will need to text, email or send a letter to their consumers between 10 to 40 days before their contracts come to an end saying:
- the date their contract can be terminated without a penalty
- the price they have been paying
- any changes to the price or service that automatically come into effect after the date
- how much notice they need to give to cancel the deal
- the best alternative subscriptions on offer, including the prices charged to new customers
"This will put power in the hands of millions of people who're paying more than necessary when they're no longer tied to a contract," said Lindsey Fussell, Ofcom's consumer group director. About 14% of customers do not know whether or not they are still tied to their current contracts, according to research commissioned by the regulator. It added that customers can typically cut the cost of a bundle of the services involved by about 20% if they sign up to a new deal rather than remain on a contract beyond its minimum period, However, some consumer rights organisations still have concerns the measures do not go far enough.
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