Penalty-Free Phone Switching Imposed By Ofcom
Householders and small businesses can now change telecoms providers if prices are raised without warning.
Consumers now have the right to exit landline, broadband or mobile contracts without incurring a penalty on monthly contract price terms.
The decision by telecoms regulator Ofcom now means phone and broadband firms are now required to give customers 30 days' notice of an impending price rise.
Ofcom first announced the plan last October and it now has agreement from all the operators.
In a statement, the regulator said: "It also states that any changes to contract terms, pricing or otherwise, must be communicated clearly and transparently.
"Ofcom will monitor providers' application of the guidance and complaints closely to assess the effectiveness of this new protection."
The regulator also intends to go undercover to ensure phone firms keep their word.
It said: "Ofcom will also conduct research, such as mystery shopping, to assess the transparency of contractual information given to customers by providers at the point of sale."
The new agreement also means phone operators must warn customers if they intend to reduce data, text or minutes.
Ofcom has now released a checklist for consumers before they commit to signing up to phone or broadband contracts.
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