Mobile phone companies allegedly hiding substantial price increases from customers

An investigation by the regulator, Ofcom, is set to examine the terms of consumer contracts across the telecommunications industry. The investigation comes as a response to consumer complaints and concerns regarding the lack of transparency and prominence of price variation terms in contracts entered into between March 1, 2021, and June 16, 2022.

In July, The Telegraph reported that Ofcom was considering an investigation into the fine print of customer contracts to assess their fairness.

Lindsey Fussell, Ofcom’s networks director, stressed the importance of telecoms companies fulfilling their responsibilities and providing full disclosure to customers. Fussell stated, “As millions of people are dealing with rising household bills, it is crucial that telecoms companies do not evade their obligations and ensure customers are fully informed about their contractual commitments.”

Ofcom has discovered that around one-third of UK households, approximately 9 million individuals, are experiencing difficulty paying for phone, broadband, and streaming services as costs continue to rise.

In response to the investigation, a spokesperson for BT emphasized that their price increases are clear and occur predictably in April each year. The spokesperson also assured that the company is committed to effectively communicating any changes to customers in a timely manner and will cooperate fully with Ofcom’s investigation.

Hyperoptic CEO Dana Tobak welcomed the investigation as a significant step in protecting consumers from price increases during their contract term. Tobak highlighted that consumer awareness of contractual clauses and their impact is crucial in the current cost of living crisis. In a letter to Ofcom in April, Hyperoptic emphasized the lack of consumer awareness and its detrimental effects.

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