Statement published 19 July 2024
Wherever telecoms or pay TV providers include price rises in their contracts, they must set these out clearly in pounds and pence, before a customer signs up.
In December 2023, we consulted on making changes to our General Conditions to require providers, where they apply in-contract price rises, to set these out upfront, in pounds and pence, at the point of sale. This statement sets out our decision to proceed with these changes.
When new rules come into effect, they will prohibit providers from including inflation-linked or percentage-based price rise terms in new contracts.
Providers must draw information about in-contract price rises information to the customer’s attention prominently before they are bound by the contract, in a clear and comprehensible manner (including during a sales call or other verbal sale such as an in-store sale) to enable them to make an informed choice. Providers must also set out when any changes to the monthly price will occur.
Providers may increase their prices during the contract period and the new rules do not restrict their ability to set the level of their prices. However, they will prohibit providers from including inflation-linked, or percentage-based, price rise terms that apply to the Core Subscription Price in new contracts. This will give consumers clarity and certainty about the price they will pay, helping them choose the best deal for their needs.
Guidance setting out our expectations
We are issuing guidance to accompany the new rules, to assist providers to comply. The guidance includes examples of how providers could present any in-contract price rises at the point of sale.
The new rules and guidance will apply to new contracts from 17 January 2025.
