Ofcom will be putting into effect its new guidelines for
mid-contract price rises starting tomorrow, January 23rd 2014.
Customers signing up to new deals after this date will be able to
leave their contract without penalty if their provider ups the
price of their regular monthly bills.
The guidance is more of a clarification than a set of new
rules, but it ensures that providers will now give their customers
at least one month notice of any price increase, during which time
they will be allowed to exit the contract.
The same rules apply for anything that is "likely to cause
material detriment" to the customer. For instance, a mobile network
won't be able to reduce a customer's call, text or data allowance
in order to effectively increase the price of a
Claudio Pollack, Ofcom's Consumer Group Director,
We have reached an important milestone in our work to ensure
consumers and small businesses have better protection against
unexpected price increases. Additionally, our new guide highlights
important factors customers might want to consider before entering
into a new contract to help them understand exactly what they are
signing up to.
Ofcom will be monitoring how the new guidance is used and
will be continually assessing how effective the guidelines are.
They will also be performing mystery shops to make sure providers
are being as transparent as possible about their monthly