Summary
The UK's media regulator, Ofcom, criticized O2 for raising phone contract prices more than what was initially communicated to customers. While O2 states they are within regulations, Ofcom claims the price hike goes against transparency rules meant to protect consumers from unexpected increases. Ofcom encourages customers to leave contracts without penalties if they are unhappy with the changes.
Key Facts
- Ofcom criticized O2 for increasing phone contract prices more than originally promised.
- New rules from January require companies to inform customers of price hikes in advance.
- O2's price increase was £2.50 per month, instead of the advertised £1.80.
- O2 claims the price rise aligns with regulations and helps fund network improvements.
- Customers have 30 days to exit contracts without penalty, except for any remaining handset costs.
- Consumer expert Martin Lewis expressed concern that other companies might follow O2's example.
- Ofcom reminded mobile companies of their duty to inform and fairly treat customers.
- The price rise is a flat fee, not linked to inflation, which is permissible under current rules.
