Labour has called on the Committee of Advertising Practice (CAP) to fast track new rules to protect consumers from ‘misleading’ marketing related to new mobile and broadband deal offers this Christmas.
Mid-contract price rises and other costs hidden within advertisements, will reportedly cost people hundreds of pounds more than previously expected.
The request from the Labour party comes after a CAP consultation investigated whether telecom brands were making it clear that prices may rise in their ad campaigns.
According to The Guardian, mobile and broadband providers make billions of pounds every year by implementing price hikes to bills midway through contract periods, however this is not always made clear when consumers sign up for new deals.
Vodafone and BT have both asserted that they will continue to use a ‘mechanism’ to raise prices annually by the rate of inflation.
Inflation currently sits at a 41 year-high of 11.1% meaning that customers looking to sign up for a new two-year contract this festive period could pay up to £240 more than they originally thought.
Telecom regulator Ofcom has also asked broadbrand brands to ‘think hard’ about price hikes.
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“Proposals to make telecoms pricing more transparent and easily understood are essential,” Labour shadow culture secretary, Lucy Powell, said. “As inflation surges and families are put under more and more pressure, it’s vital that urgent measures are taken to protect consumers from mid contract price rises they did not expect and can ill afford.
“The advertising authorities should expedite action before Christmas, so consumers aren’t caught unawares.”
Broadband company Hyperoptic has also written to the ASA, CAP, Ofcom and the culture secretary, to encourage them to implement “emergency interim measures” to introduce new guidance on the marketing and advertising of mid-contract price rises.
“The Christmas and New Year sales period is a popular time of year for the sale of broadband products, with advertisers focusing heavily on ‘deals’, appealing to the need to save money,” Hyperoptic chief executive Dana Tobak wrote in the letter.
“Yet for operators that use price rise clauses, the prices advertised will only be applicable for a very short time before the April 2023 price rises. Real consumer harm is being done by the practice of mid-contract price rises.”
