The telecommunications (“telecoms”) industry is governed by the guidance of the Office of Communications (“Ofcom”) and Advertising Standards Authority (“ASA”). Their regulations have become more stringent over the years to protect consumers and regulate competitive telecom companies by setting out tougher guidelines.
Contracts can be onerous and misleading and should not be entered into until all terms have been read carefully; however, it is common for individuals to not carefully read the small print. Even when the terms and conditions have been considered fully, it is not uncommon for them to be misconstrued by customers, which can cause issues down the line. There have been many cases of customers trapped in contracts with rising costs, that they struggle to get out of due to clauses relating to early termination charges, limitation periods, or penalties. This is a common issue with all types of contracts, not just those related to telecoms.
New Guidance from the ASA and Ofcom
On the 9th October 2024, the Advertising Standards Authority (ASA) upheld complaints against six UK telecom providers (BT, EE, Plusnet, TalkTalk, Telefonica O2 and Virgin Media) for failing to present information about mid-contract price rises in a manner that is transparent to its consumers.
From 17 January 2025, new consumer protection rules will come into force with Ofcom banning mid-contract price rises linked to inflation for phone, broadband and pay TV providers. Any contracts that are entered into from that date should have any price rises written into them, set out clearly with the amounts featuring £/p and when any changes occur.
As the regulations continue to change, there are more safety nets in place to further protect consumers, giving them more rights.
If you have been misled into entering a contract that has caused you or your company a financial burden, and you have reason to believe that it wasn’t in accordance with the regulations set out by Ofcom or ASA, then you may have grounds to complain, or have a claim against the company in question.
How Branch Austin McCormick LLP can help
We can:
- Review your contract (including express and implied terms and conditions);
- Advise you on your rights under your contract (including the right to terminate and/ or claim damages and compensation);
- Advise on the rules and regulations of applicable governing bodies; and
- Assist you with any claim you may have, or complaint in relation to your contract, with a view to achieving a swift resolution.
In the last month, Sophie Francis has assisted multiple clients in terminating their contracts without charge, and/or receiving settlement funds, the most recent being:
1. Company client – termination of a telecoms contract lasting over a 60-month period with a major telecom company. The client was misled into entering this contract which was subject to price increases that were not fully appreciated or understood. Termination of the contract was achieved with no early termination charges and the client subsequently received settlement monies.
2. Individual client – termination of a binding electronic booking contract with a student accommodation provider without any charge or liabilities under the contract.
If you believe that you have been misled into entering a contract (whether in relation to telecoms or otherwise) or believe the contract has been misrepresented, or that you have subscribed to services you did not need which has left you or your company stuck with a financial burden, then please contact Sophie Francis in our Litigation Team at sf@branchaustinmccormick.com
