UK operators will have to tell customers when their contract approaches expiry, and which deals are available.
Background: Ofcom has worked on ways to foster consumer choice for several years now. Most of the regulator’s effort related to facilitating the switching of contracts, and to improve transparency around aspects such as broadband speeds. Ofcom’s research also found that more than 20 million UK customers have passed their initial contract period, and could be paying more than they need to.
The new rules: To address the problem, Ofcom is now announcing new obligations on UK operators, to tell customers of the imminent expiry of their contract (between 10 and 40 days before its end). Alerts will be sent by text, email, or letter; Annex 3 of Ofcom’s statement provides for what they will include: end date, price paid until then, any changes to service or price paid at the end of the contract, information about any notice period for contract end, and the best deals offered by the provider (including telling an existing customer what prices are available to new customers). People who choose to stay with their provider without signing a new contract will be sent a reminder every year about its best deals. The decision is almost unchanged compared to the initial proposal published in December 2018.
Next steps: Companies will have nine months to make the necessary changes to their systems and processes. Customers will start receiving the notifications from 15 February 2020.
