UK watchdog to examine whether telecoms companies mislead customers
The UK advertising watchdog has launched an investigation into whether telecoms companies are misleading consumers about inflation-busting bill increases when promoting deals in their marketing campaigns.
Telecoms companies make billions of pounds annually by instituting price rises to mobile and broadband bills midway through contract periods – increases that will add to the biggest squeeze on the cost of living facing households in generations.
The Committees of Advertising Practice (Cap) – which write the codes that all UK advertisers have to follow when running ads in any media, from TV and newspapers to billboards and online – have launched a consultation to scrutinise whether telecoms companies are clearly telling consumers about looming price rises in their campaigns.
The timing of the decision to launch the consultation is in part due to concerns that many telecoms companies raise prices annually in line with inflation, now at a 40-year high, which means millions of consumers could face bill rises of as much as 20% next spring.
“Rising inflation means consumers are experiencing a squeeze in the cost of living across all essential expenditure, including utilities, with low-income groups the hardest hit,” Cap said. “In that context, it is even more important that consumers are presented with clear and prominent information in advertising about what their contract will cost them throughout its term.”
The consultation aims to examine whether telecoms marketing, which Cap said was often complex, complies with rules preventing misleading advertising including by not omitting material information on price changes.
“The variety of contract types, product bundles and media involved can provide a challenge to how this
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