UK Makes Carriers Disclose Lower Rates by Competitors

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Ofcom (The Office of Communications), the regulatory agency for telecommunications in the United Kingdom, has issued a consumer friendly edit. As part of the ongoing Fairness for Customers Programme, participation terms must be shared with clients, notes The Telegraph.

“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,” said Lindsay Fussell, Ofcom’s consumer group director of the directive. It is estimated that one in seven subscribers do not know if their original agreement is still in force. 

New rules will require the service provider to inform consumers when their term of service is due to expire, and to present different, less expensive, options that are available to them.

The Telegraph reports that approximately one third of cell phone customers complete their initial term and accrue unexpected costs when they are moved to new plans with no warning. They may also be charged for equipment, like handsets, that are no longer covered under the original agreement.

The new notification rules are due to take effect starting in February 2020. According to Ofcom, the long lead in period should give the companies plenty of time to get their customer alert procedures in order.

May 28, 2019

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