Ofcom bans operators from automatically renewing contracts

A lot of people are often puzzled and then inconvenienced by automatically renewed contracts. Many operators actually practise this, such that you’d have to give them a call or expressly write to them that you want to end or cancel your contract. It’s quite a huge hassle, especially if you have already indicated the duration of your subscription when you first signed up with the network.

These are called Automatically Renewable Contracts, which are rollover contracts that are issued by telecommunications firms to individuals and establishments. These plans often result in the consumer having to pay uncompetitive fees for the subscription or service availed of.

Well, you will be pleased to learn that Ofcom has now banned operators from doing so. As of December 31, the regulator has put an end to the practise of automatically renewing contracts. This means that once a contract ends, the operator can no longer renew it right away without the express consent of the subscriber or without specific instructions from the subscriber. I’m sure this will save many people from the hassles of going the extra mile to cancel a subscription that was supposed to have ended already.

Business experts from Make it Cheaper have commented on the matter. MD Jonathan Elliott said that Ofcom’s ban would eventually lead to the decrease of prices in the industry. “Anything that makes it easier to switch means that more people will be prepared to give it a go. This encourages competition and should lead to suppliers keeping a lid on prices as well as focussing more on customer service as they try to reduce churn.”