After a rise in the number of complaints from consumers, Ofcom launched a review into whether the contracts give householders “sufficient certainty and clarity” over their bills. The regulator said these in-contract price rises were introduced in 2021 by “a number of telecoms firms”, with “many but not all” companies now using them.
Cristina Luna-Esteban, Ofcom’s director of telecoms consumer protection, said these contracts could be “unclear and unpredictable,” adding: “We’re taking a thorough look at these types of contract terms, to understand fully the extent to which customers truly know what they’re signing up to, and whether tougher protections are needed.”
Ofcom’s research showed that “around a third” of mobile and broadbandcustomers don’t know whether their provider can lift prices within the lifespan of the contracts. Half had no idea how any rise would be calculated.
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