The regulator sees these alerts as an important consumer protection tool, which have enabled some households to save close to £10 per month
Consumers should be notified when their contract is up: Following an investigation, Ofcom has found that Sky has breached – and continues to breach – end-of-contract rules by failing to send notifications to its pay TV customers. On 15 February 2020, the regulator introduced new obligations under its General Conditions of Entitlement, which require broadband, mobile, fixed voice and pay TV companies to notify their residential and business customers 10 to 40 days before their minimum contract period ends (whether by email, letter or text). In December of that year, Ofcom opened an investigation to examine whether Sky could have failed to comply with its obligations, finding in May 2021 that there were reasonable grounds to suspect that it had done so. Sky was given the opportunity to make representations on the matter, which Ofcom considered before reaching its conclusion.
Ofcom confirms that the rules apply to Sky: The trigger for the regulator’s investigation was a disagreement on the scope of the term ‘electronic communications service’. Ofcom’s end-of-contract rules apply to all providers of such services; however, Sky did not believe that its standalone pay TV services (delivered via a satellite distribution network) fell within the definition of this term, instead considering them a content service. Sky therefore argued that it was under no obligation to notify its pay TV customers when their minimum contract period was coming to an end. Having reviewed Sky’s representations, on 19 August 2022, Ofcom concluded that where Sky’s pay TV services rely on digital satellite transmission, Sky provides a public electronic communications service to its customers. As such, Sky is required to send end-of-contract notifications and has been in breach of its obligations since at least 26 March 2020.
Sky could look to appeal the regulator’s decision: Sky now has nine months to comply with its obligations – and must provide Ofcom with a progress report within the next four months. In addition, Sky has two months to appeal Ofcom’s decision to the Competition Appeal Tribunal, which may come about as Sky continues to assert that its pay TV service does not constitute an electronic communications service. Ofcom considers end-of-contract notifications to be an important tool to encourage consumers to shop around, with its rules enabling some customers to save an average of £110 a year when taking out a new package in response to an alert. As our research shows, other European regulators have introduced similar measures to nudge end users towards tariffs that better reflect their needs and budgets, which is becoming crucial at a time when household finances are under increasing pressure.
