New protection for phone users

PEOPLE and small businesses taking out new landline, broadband or mobile contracts should from now on be protected against mid-contract price rises.

From January 23, people taking out a new contract have the option of exiting the contract without penalty if their provider increases the monthly subscription price agreed at the point of sale.

The new guidance follows an Ofcom review which found many people were caught unawares by price rises in what they believed to be fixed-price contracts.

The guidance says customers should be given at least one month’s notice of any increase and be allowed to exit the contract without penalty.

It also states that any changes to contract terms must be communicated clearly and transparently.

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