Telecommunications: Prices
The question
To ask the Secretary of State for Business and Trade, what steps his Department is taking with regulators to help tackle (a) the use of inflation linked price rises in consumer communications contracts and (b) the advertising of VAT exclusive prices.
Answered by Kate Dearden
Ofcom, the independent regulator of telecommunications, has banned inflation-linked in-contract price rises. Since 17 January 2025, all retail telecom providers have been required to set out clearly ‘in pounds and pence’ the price the consumer will pay at the point of sale and be up-front about any increases.
The Digital Markets, Competition and Consumers (DMCC) Act 2024 prohibits unfair commercial practices against consumers, including misleading omissions and actions. The Department is not currently working with regulators regarding the advertising of VAT exclusive prices. The Advertising Standards Agency has provided advice to businesses on advertising prices: https://www.asa.org.uk/advice-online/compulsory-costs-and-charges-vat.html
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