New rules protecting home and small business customers from mid-contract increases in landline, broadband or mobile prices come into force this week
The rules were first announced in October and apply to any new landline, broadband, and mobile contracts (including in some cases bundled contracts) taken out or renewed from 23rd January 2014.
If a service provider wishes to put up costs after that date they will need to provide one month’s notice of the increase and allow customers to cancel their contract at no penalty.
The new rules are an important and much-requested protection for consumers.
As well as protecting users from enforced price increases, the rules will prevent providers from reducing calling, text and download allowances without also reducing prices.
Ofcom says freezing prices while reducing allowances would be classed as a backdoor price increase.
Claudio Pollack, Ofcom’s Consumer Group Director said: “We have reached an important milestone in our work to ensure consumers and small businesses have better protection against unexpected price increases.”