Ofcom Proposes Banning Mid-Contract Inflation Price Rises to Increase Transparency, Save Consumers £500 Million
• Ofcom proposes banning phone, broadband, and TV companies from imposing mid-contract price rises linked to inflation, requiring them to disclose all price rises upfront in pounds and pence.
• Ofcom says inflation-linked price rises cause consumer harm by undermining ability to compare deals; over 800 complaints received Jan-Oct 2022 about price rises.
• Research found major telecoms companies are implementing above-inflation price rises in 2023, adding almost £500 million to bills.
• Ofcom consultation open until February 13th, with final decision and new rules to take effect 4 months after spring 2023.
• Fewer than 2/3 of TalkTalk customers got 2023 increase; company says rises linked to its wholesale costs also rising with inflation.