Friday, January 24, 2014

UK carrier finds loophole to let it increase prices mid-contract

 

 

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UK carrier finds loophole to let it increase prices mid-contract
1/23/2014 12:36:00 PM

Well, that didn't take long. It's a matter of hours since the UK telecoms regulator Ofcom brought in new rules to protect mobile customers from mid-contract tariff increases, and already one network has changed its T&C's to protect itself. As of today, any customer who signs up with O2 must explicitly agree that their tariff will go up each year in line with inflation, starting with a 2.7 percent increase on March 1st. By contrast, customers who had signed up before today had only been told that prices might go up with inflation. Why is this so ironic? Because, indirectly, Ofcom's involvement seems to have turned a possible price increase into a definite, contractual one, whereas the original intention was to ensure that "fixed means fixed." Anyhow, in O2's defence, it hasn't breached Ofcom's code, and other carriers may well be planning to do the exact same thing.

[Thanks, Anon]

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