Cable Forum - Virgin Media price rises break the law

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Virgin Media price rises break the law

https://www.telegraph.co.uk/money/co...nsumer-advice/

Quote:

Virgin Media’s price rises ‘break the law’, says Which?

Virgin Media has been accused of unfairly increasing broadband prices for millions of customers in a move that has been condemned as “potentially unlawful”.

The consumer rights group Which? has accused the telecoms company of applying “aggressive” inflation-linked mid-contract price increases while making it difficult for customers to cancel their deal without paying high exit fees.

Ms Concha said: “While other providers use the consumer price index (CPI) to calculate inflation-linked mid-contract price rises, Virgin Media is the only major broadband firm which will use the RPI from next spring.

RPI is currently significantly higher than CPI. It lost its status as a national statistic in 2013 and has been heavily criticised as a measure of inflation.”

Which?’s complaint to Ofcom also highlighted a clause in Virgin Media’s terms and conditions which states that it can “change our charges at any time”, arguing that this could amount to an unfair contract term and be in breach of the Consumer Rights Act.

Virgin Media has rejected the claims, describing them as “baseless” and “a one-sided, selective and misinformed reading of widely used contractual terms”.

However, Rocio Concha of Which? said Virgin Media was “trying to have its cake and eat it” by passing on inflationary price rises to millions of its internet customers.

“Which? believes this is not only unacceptable but potentially unlawful and Ofcom [the telecoms regulator] must investigate urgently,” she said.

Virgin Media strongly rejected the claim that it was potentially breaking the law.

Telecoms companies are facing growing scrutiny over their contracts following sharp increases in both mobile and broadband charges this year. Customers of BT, Vodafone and Three faced a rise of 14.4pc in April.

Virgin Media cable customers faced an average increase of 13.8pc. Mobile and internet firms have defended the large increases, saying they have to cover rising costs and investment in their networks.

Virgin Media will implement an annual price rise next April based on retail price index (RPI) inflation plus 3.9 percentage points.
“We have no plans to increase monthly bills multiple times within the same year. If separate out-of-bundle charges are increased at any point, this would be clearly outlined and customers would receive a right to cancel.

“Our terms and conditions have been drafted in line with standard industry practice, consumer law and Ofcom guidelines.”

Ofcom said it would respond to the issues Which? had raised. The watchdog is already investigating Virgin Media following complaints from customers that the company had made it difficult for them to cancel their services.

Ofcom said some customers were struggling to get through to an agent on the phone, while other calls ended mid-way through or were put on hold for long periods.

A spokesman said: “We already have an enforcement programme open into whether telecoms firms have previously been complying with our rules, which state that mid-contract price rises must be set out clearly before customers sign up.

“We are also reviewing whether inflation-linked, mid-contract price rises give customers sufficient certainty and clarity about what they can expect to pay. We will report on both of these later this year.”

Does Ofcom have any teeth? VM are going to find out....