Watchdog calls for transparency from communication providers

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Watchdog calls for transparency from communication providers

Thu 28th Feb 2008

Ofcom has called for new guidance to be introduced for providers of communication services, including landline, broadband and pay-TV, to ensure that any additional charges they make are fair and transparent.

The watchdog has warned that although increased competition has driven prices down, customers may be incurring additional charges for a range of things, including not paying by direct debit or receiving paper bills.

Its proposed guidelines will spell out what communication providers are required to do to meet their obligations under the unfair terms in consumer contract regulations.

The draft guidance is centred around two main principles, namely that providers must make any charges clear to their customers and that charges that are outside the price of the main contract must be "demonstrably fair".

Ofcom chief executive Ed Richards said: "For consumers to get an all round fair deal they need to know the full costs of the services they are buying."

A study released today from uSwitch found that home phone customers are being penalised by their provider for things like receiving paper bills and paying by cash, which costs Brits a total of £237 million a year.

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