Ofcom has reminded us that communications providers, such as those ISPs and companies offering broadband, mobile, phone and pay TV services, are today required to introduce a number of changes, including simpler contract details, more rights to exit your contract early and the introduction of an emergency video relay service.
The changes, most of which were originally planned (here) to be adopted as a result of the pre-Brexit updates to the European and Electronic Communications Code (EECC) legislation, are all due to be enforced from today (17th June 2022). However, we’ve already discussed the new requirement for ISPs to offer an Emergency Video Relay Service (here), thus we’ll just focus upon the remaining tweaks.
In addition, the regulator’s plan to introduce a new One Touch Switching (OTS) process for customer migrations between UK broadband ISPs on different networks, also forms part of the same tweaks. But that change is not due to be formally introduced until 3rd April 2023.
Summary of the Two Key Changes
Simpler Contract Information
Customers must now be provided with a short, one-page summary of the main contract terms before entering a contract, including clear examples of how any price increases will affect the price they pay. This is designed to help people avoid being caught out by surprise price rises, at a time when household budgets are under heavy strain.
The summary must include key information about the speed of the service, price, and length of the contract. It also requires firms to set out the terms and conditions if a customer decides to end their contract early. Customers with disabilities can also request to receive the documents in an accessible format.
Some providers offer deals that include a price rise linked to inflation that takes effect during the contract. Provider’s that use this calculation will, from today, be required to provide a straightforward example to a new customer of how this is likely to affect the price they will pay in pounds and pence. If the increase uses an inflation index such as CPI or RPI, then providers should use the most recent figure for their example.
Example Text – “In April 2023 your price will increase by an amount equal to the RPI rate published in March of that year. Using May 2022’s RPI value of 7.8%, this would mean your monthly price of £40 would increase to £43.12 from April next year.”
New Rights to Exit Your Contract
Ofcom have made it easier for customers to exit their contract if a provider makes any changes to their terms that were not agreed to when they signed up and are not expressly to the benefit of the customer. For instance, if a provider increases the charge for paper billing, those customers who use that service would need to be notified a month in advance about the change and offered the right to exit, penalty free.
In addition, providers will need to notify all customers of an increase in their late payment charge on the same basis. Where a customer decides to exit, their contract must be terminated from the day before the change comes into effect (unless the customer agrees otherwise).
Both changes are considered to be fairly minor tweaks, which increase transparency and help to keep consumers informed. But we’re particularly happy to see Ofcom extend the right to exit, which now covers almost any changes to the agreed contract terms that are not to the customer’s benefit.
In the past, some providers have removed features or increased the price of less important services, and often without offering a right to exit your contract penalty free – usually because the changes were not considered to be of a “material detriment“. But the new rules make it harder for providers to play that game.
Cristina Luna-Esteban, Ofcom’s Director of Telecoms Consumer Protection, said:
“Our new rules will give customers key information about the contract they’re signing up to, in a short and simple way. This will mean that people will be provided with a straightforward example of any price rises, which will help them make a fully informed choice about the deal that works best for them.”
End.
So Three put my price up in April and didn’t let me leave on any of my contracts – is this now going to change?
If the increase is greater than RPI you are free to leave.
If this was the 4.9% increase allowed in their T&Cs then no you cannot leave.
Just save yourself the pain and leave any ways.
Quite right to have this wording, with an example, required for mid contract price rises. Now we just need the information to be headlined, just like any other key contractual term.
Most of this is already covered by the Consumer Rights Act
Key terms have to be made prominent. So Price,. Whether they can change it and length of contract. Cancellation terms
Some ISP;s did make it prominent but most still hide it in the fine print
I would say if the terms were not made prominent you should be able to cancel without penalty
I’m a broken record on this, but I’d agree. Nonetheless, better regulation and enforcement is needed. It doesn’t help the average consumer if they don’t know their rights.
Pointless regulation when providers are completely free to raise prices mid contract anyway
They are free to raise them up to RPI, after that you can leave mid contract no penalties.
Alex A’s comment about RPI is no longer valid. Depends what your T&Cs say, if you agree to an annual increase of CPI+3.9% like EE has in its contracts there is nothing you can do as you have agreed to these.
Does not stop being a greedy anti consumer predatory practice if it’s in the contract when it’s the only contract available. In my new build, either sign up a whopping 24 months with BT that says they can increase their price (which they sneakily did just one month in) or I’m simply unable to do my job. To make matters worse there is no other provider because the developer didn’t want the hassle, even though Community Fibre is serving a smaller block just around the corner
EE put my price up in April, but still sell the exact same package I’m on at the old price. Like WTF?
Phone up and ask to recontract. If an advisor says no, ask to be put through to the cancellation department. They will recontract you quick enough
Clearly it’s false advertising.
I work for a broadband company, and while a lot of advisors were not happy they had an extra bit of work to do, as I was briefing this out I could see the benefit to both consumers and the workers of the communications companies.
It’s always better to have a black and white copy of any agreement at hand. It keeps clarity between customers and the company.
The material detriment part is my favourite, of course consumers will use this to their advantage, but that is a good thing
What annoys me is that a contract can have this annual CPI+ increase, but for new customers on the web site the same product has no price increase.
I had 3 x Data SIMs from PLusnet all subject to the price increase
All on a rolling 30 day contract, so I cancelled all 3 and re-purchased them from their web site at the original price
Why doesnt OFCOM stop this rip-off
I went to renew my neighbours Broadband package with BT
I then came across a line which read something like “Keep to you original package and Renew”
I clicked on the next page to find a choice of 3
Renew existing package (Circa £21), upgrade to Fibre(Circa £27), upgrade to Fibre+ (?)
But the “Renew” was greyed out
I rang BT to be told this option wasn`t available I would have to upgrade
I refused and we met half way at £24 which was still an increase of £3 for the same product
All my elderly neighbour used the package was for emailing and once a week ordering her shopping from Sainsburys
I had to stay with BT and my neighbour refused to move to another provider
if your neighbour is comfortable with a smartphone, they may not have need for a home internet service then, as both emailing and grocery shopping are easy to do on a modern smartphone, even inexpensive ones.