Back in July 2007 Vodafone, O2, Orange, T-Mobile, and O2 signed up to a voluntary industry code, due to the amount of complaints that Ofcom were receiving from customers regarding mis-selling and cashback deals.
Unfortunately some third party companies are still not complying with this code and selling customers mis-leading deals by giving them false or inaccurate information, leaving customer's confused and out of pocket.
Ofcom are still receiving large numbers of complaints due to cashback deals and mis-selling, receiving on average 700 complaints per month.
Ofcom warned the networks that unless the number of complaints reduced significantly that they would use formal regulatory measures to help to protect customers. Ofcom have proposed the introduction of a legally enforceable general condition that communication providers would have to adhere to under the Communications Act 2003. If this was to be broken the penalty could be a fine of a maximum of 10% of relevant turnover.
The general condition will ensure the following points are followed.
&bullMobile operators and those selling their products must not be involved in any misleading, deceptive or dishonest conduct.
&bullCustomers intend and are authorised to enter into a mobile phone contract.
&bullAll contract information is given to the customer when the deal is purchased.
&bullAny cashback deals offered by retailers must have fair terms and conditions.
&bullMobile operators must check all of their retailers to ensure these points are adhered to.
The proposal when put into place will give customers the reassurance that they have all the relevant information when purchasing their mobile phone deal and the safe knowledge that they have not been conned into a mobile phone deal that they did not want.
If you are purchasing a mobile phone in the mean time always make sure you go to a reputable retailer, and don't be afraid to call them up and ask as many question as you need answering before placing an order. If your still in doubt, you could go through OneCompare.com who offer help and advice on how and when to claim your cashback or free gift, and are always their to answer any questions you may need answering before placing your order.
