Broadband, phone and pay-TV firms will need to tell customers when their contract is coming to an end and how they can save money under new rules confirmed by Ofcom today.
The UK’s highly competitive market means firms offer a range of promotions and deals to tempt new customers to switch to them, but many of these lower prices come to an end after the initial contract term, with customers often facing automatic price hikes as soon as they’re out of contract.
Under the new rules firms will have to contact customers between 10 and 40 days before their contract comes to an end, confirming their minimum term end date, the price paid before this date, any changes to the service and price paid at the end of this period, details of any notice period required to end the contract, and the best deals offered by their provider, including what prices are available to new customers.
Customers who choose to stay with their provider without signing a new contract will be sent a reminder every year about their firm’s best deals.
The regulator first announced the change last Summer and has now confirmed it will come into effect from 15 February next year.
Lindsey Fussell, Ofcom’s Consumer Group Director, said: “We’re making sure customers are treated fairly, by making companies give them the information they need, when they need it.
“This will put power in the hands of millions of people who’re paying more than necessary when they’re no longer tied to a contract.”
