Summary
The government is concerned about O2's recent announcement to increase contract prices by £2.50 a month. The Technology Secretary, Liz Kendall, has asked the media regulator, Ofcom, to review phone companies' mid-contract price changes to ensure fairness for consumers. O2 claims the price increase complies with regulations and offers customers the option to exit contracts without penalty.
Key Facts
- O2 announced a monthly price increase of £2.50, which was higher than initially stated.
- Technology Secretary Liz Kendall expressed disappointment and asked Ofcom to revisit rules about mid-contract price increases.
- Ofcom shared concerns about customer treatment during price hikes and promised a response by November 7.
- Current rules require companies to inform customers of price increases in advance, and allow a penalty-free exit.
- O2 argues their price change is justified and has not violated any regulations.
- O2 has given customers 30 days to switch providers without penalties if they continue device payments.
- The government wants a review to ensure it's easy for consumers to switch providers if needed.
- Citizens Advice expressed concerns that rules don't fully protect customers from mid-contract price increases.
