A new guide published today by Ofcom sets out some factors people might want to consider before signing a new mobile telephone or broadband contract and explains what you can do if the price you agreed to at the point of sale increases unexpectedly.
Is the core price fixed, tiered or variable?
The core subscription price – usually the price that you have to pay each month – is likely to be one of the most important factors in your choice of contract. It may be:
· Fixed – where you agree to a single price which is fixed for the fixed term of the contract e.g. £20/month for 24 months.
· Tiered – where you agree to pay different prices at different times, e.g. £x/month for the first 12 months and £y/month for the second 12 months.
· Variable – where you agree to pay a core subscription price for the fixed term of the contract, but the provider reserves the right to increase the price at its discretion.
Sir Edward said: “No matter what type of contract, the core subscription price or prices you agree to pay should be set out clearly and transparently for customers at the point of sale. If people are not clear what they’re agreeing to, or are uncomfortable with the type of contract being offered, they should not sign up. I encourage my constituents to read the guide so they don’t fall victim to meaningless or confusing jargon and make a decision from a position of knowledge before agreeing to any subscription.”