Hyperoptic calls for new rules on mid-contract price rises

Wed, 16/11/2022 - 10:50
Dana Tobak

CEO Dana Tobak has written to the heads of Ofcom, DCMS, and the ASA and CAP, calling for emergency changes to the way broadband plans with mid-contract prices can be advertised.

The letter is sent as CAP prepares to close its consultation on mid-contract price rise advertising and calls for an immediate requirement that advertised price claims must clearly set out any mid-contract price rises.

Tobak states that advertising includes a clear explanation of the calculation and the real impact it will have on what customers are going to have to pay.

The request feeds from a study that shows confusion over broadband price rises, with more than 80 per cent unsure what CPI refers to, and one in 10 thinking it relates to the speed of their broadband.

Half said they felt confident about working out a percentage rise to their bill, but only 23 per cent got the figure right when trying to calculate the actual sum.

Current rules allow providers to hike charges mid-contract by the CPI rate of inflation plus an extra 3.9 per cent on top.

Tobak said: “The big broadband providers are taking advantage of inflation rates to boost their revenues, at the expense of people already struggling to cope with the cost-of-living crisis. This behaviour is eroding trust in the industry.”