Jamie Stone calls for greater transparency on broadband contracts
Liberal Democrat MP for Caithness, Sutherland and Easter Ross, Jamie Stone, has written to the Government asking what they are doing to ensure transparency when it comes to broadband mid-contract price rises.
In the letter, Mr Stone outlines:
“Many communications providers use a formula of Consumer Prices Index (CPI) to include an annual contract price rise within their consumer contracts.
“This allows providers to increase prices mid-contract by and above the rate of inflation.
“Currently, the CPI rate is based on January’s figure, which is 10.5%.
“Most large providers then add 3.9% on top of this.
“As a consequence, broadband bills could go up by 14.4% this year for many people in the UK.
“This is typically masked within the small print of broadband contracts – making it likely that consumers unaware of this formula will find themselves stuck in contracts that they can’t leave without paying a penalty.”
Commenting, Mr Stone said:
“At the moment there is not nearly enough awareness when it comes to mid-contract price rises.
“This means that people who are already struggling with increased costs of living will have a nasty surprise by yet another inflated bill.
“Broadband is not a luxury, it is an essential.
“From education to business, being connected is critical to modern life.
“This is why the Government has a responsibility to ensure that no one – no matter where in the UK they live – is blindsided by the small print.”
