Ofcom Add New Protections for UK Broadband and Mobile Users

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.