The regulator said it is concerned that customer contracts do not provide sufficient certainty about the prices they will pay, noting that “most major phone, broadband and pay TV companies now include mid-contract price rises linked to uncertain future inflation”.
Ofcom has proposed to introduce a new rule requiring that any price increases would need to be set out prominently and transparently in consumer contracts at the point of sale. That would include being clear about when any changes to prices will occur.
The regulator added this would prevent providers from including inflation-linked, or percentage-based, price rise terms in all new contracts.
Ofcom is consulting on this proposed new requirement until 13 February 2024, and plans to publish a final decision in spring 2024.
Separately, Ofcom has investigated whether phone and broadband companies complied with previous rules between March 2021 and June 2022.
It has found that a small number of providers may not have given some customers clear information about price rises at the right time, creating a potential compliance concern.
A spokesperson said, “We have discussed these concerns with the relevant providers and secured refunds for some affected customers. We will continue to discuss our remaining concerns with these providers, escalating to separate, targeted enforcement action if necessary.”