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ISP Manx Telecom Failed to Warn Customers of Price Hike

Wednesday, Aug 10th, 2022 (9:44 am) - Score 1,080
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The Communication and Utilities Regulatory Authority (CURA) for the Isle of Man, a British Crown Dependency, has probed the 10% price hike introduced by local broadband ISP Manx Telecom during June 2022 and ruled that the operator broke the rules by failing to “fully inform” their customers of the increase.

According to the Preliminary Decision, Manx did put a notice in the public domain, however the regulator stated that this alone “does not in and of itself demonstrate that the obligations to provide customers with at least one month’s notice of the impending increase and inform them of the ability to terminate their contract have been met” (ideally they should have sent letter or email to each customer).

The regulator said they were satisfied beyond reasonable doubt that Manx did not take the steps necessary to fully inform consumers of a significant price increase and of their consumer rights. “The Authority is of the view that Manx Telecom took steps designed to show that it had mechanistically met the requirements of its licence, but it did not take any steps to actually inform its consumers,” said CURA.

CURA’s Proposed Remedies

The Authority intends to direct Manx Telecom to provide the additional time, as proposed in Manx Telecom’s representations, for consumers to terminate their contracts, but further remedies are also required. The Authority would also require that steps are taken by Manx Telecom to ensure that all customers are directly informed of the modifications and the right to cancel, and provide a full refund of any monies collected from the 1st June 2022 to the point the contract is terminated.

In effect, it would see that any consumers that would have exercised their right to terminate their contract would not be subject to material detriment; any consumers that do not exercise their right to terminate would have incurred the cost of the increase even if it had been properly implemented in the first instance. Additionally, Manx Telecom would not benefit financially from billing customers it would otherwise not have had in the intervening period.

For the avoidance of any doubt, the requirement for consumers to terminate their contract without penalty includes the contract in its entirety and not individual elements of it, and an operator cannot levy any charges in respect of the termination.

Manx is understood to have been informed of the regulator’s decision on 28th July 2022, which gives them until 26th August to respond before the decision becomes final.

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Mark-Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and .
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Comments
1 Response
  1. Avatar photo Ryan says:

    Don’t you also have to give people a leave for free card too if you object to the price rise?

Comments are closed

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