New rules to Safeguard Mobile Consumers
Ofcom was compelled to introduce new rules for mobile service providers to put an end to constant complaints by consumers about being tricked into misleading mobile contracts.
The mobile network operators were unable curb the misleading selling practices, despite launching a voluntary code of practice in July 2004. When the consumer complaints kept pouring in, Ofcom had to wield its authority to formulate new rules. All mobile broadband and mobile service providers can now either conform to the new norms or face a fine of up to ten percent of their relevant turnover.
According to Ofcom, when the new rules were proposed in March last year the number of complaints drastically dropped from 600 to less than 200 a month. Now, with the new rules in effect, the providers are prohibited from all mis-selling practises. The providers have been asked to make sure the consumer is given all information on everything from pay as you go mobile broadband, free laptop deals or contract laptops before a contract is made and to see that the cashback offers are not limited by certain undisclosed conditions. The network operators have also been assigned the responsibility to conduct diligent checks on their retailers and resellers.
It is disappointing to see that the regulatory body had to step-in to prevent these dishonest market practices, which the mobile companies could have tackled themselves. However, this new move by Ofcom certainly safeguards the interest of the consumers and is being seen as a refreshing change. The only question that faces Ofcom is why it took so long to intervene in a matter that deserved its attention much earlier.
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