Ofcom Introduces New Rules to Protect Customers from Mis-selling Practices
Ofcom has introduced new rules that govern the sales of mobile connections, after it receive numerous complaints of mis-selling by mobile service providers across the UK.
The mobile network operators had introduced a voluntary set of guidelines to govern the sales of mobile connections to customers in July 2004. However, the code proved ineffective, forcing the Ofcom to take measures in this regard. The new set of rules carry a stiff fine of up to10 per cent of the relevant turnover, if the companies selling mobile and mobile broadband connections are found violating the guidelines.
The new rules were proposed in March 2008, and Ofcom figures indicate that complaints fell to a low of 200 from 600 per month since then. The regulations primarily require the service providers to take responsibility for their resellers and retailers, so that no dishonest selling practices are undertaken. They place an obligation on the network operators to make sure their services are not mis-sold and ensure that the customer is provided with all the relevant information at the point of sale on everything from pay as you go mobile broadband, free laptops or contract laptops. The rules also ask companies to stay away from making unduly restrictive cashback offers.
The news should ring a relieved sigh from consumers who have long been plagued by misleading offers and cashback schemes that never yield any cash. Ofcom’s decision has put the mobile service providers to shame, although some say Ofcom’s action came late.
