Regulatory Outlook

Telecoms | UK Regulatory Outlook April 2024

Published on 23rd Apr 2024

CMA responds to Ofcom's consultation on inflation-linked price rises

H_2011101743FWI_Regulatory Outlook 2021_JAN 21_ICONS_Telecoms_landscape

CMA responds to Ofcom's consultation on inflation-linked price rises

The Competition and Markets Authority (CMA) has responded to Ofcom's consultation on the prohibition of inflation-linked price rises. Ofcom is proposing to ban telecoms companies from providing inflation-linked price rises and price rises which are set out in percentages in their contracts. The telecoms regulator proposes that companies' contracts must be set out upfront in pounds and pence.

The regulator has welcomed Ofcom's proposal, and encourages Ofcom to keep under consideration whether any further action will be needed to protect consumers and promote greater competition in the telecoms sector.

The CMA agrees with Ofcom's assessment that the existing market practice of providers including inflation-linked price variation provisions in their terms and conditions are likely to cause harm to consumers, given the complexity and lack of clarity surrounding these clauses.

The CMA also encourages Ofcom to ensure providers fully comply with the requirements under the Consumer Protection from Unfair Trading Regulations 2008 when making any changes to their contract prices. The main consideration surrounds consumers being able to make transactional decisions based on full and transparent pricing information.


View the full Regulatory Outlook

Interested in hearing more? Expand to read the other articles in our Regulatory Outlook series

View the full Regulatory Outlook

Regulatory law affects all businesses.

Osborne Clarke’s updated Regulatory Outlook provides you with high level summaries of important forthcoming regulatory developments to help in-house lawyers, compliance professionals and directors navigate the fast-moving business compliance landscape in the UK.

Receive Regulatory Outlook each month

A round-up of forthcoming regulatory developments – straight to your inbox

* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

Connect with one of our experts

Interested in hearing more from Osborne Clarke?