Ofcom sets out new contract regulations

New rules impact mobile broadband sales ? networks warn of dealer cutbacks
Publish date:

Ofcom has told networks they must fine retailers that fail to adhere to guidelines set out by the regulator regarding mis-selling of contracts.

The new regulations – which are due to come in this September – state that mobile networks and staff of direct and non-direct retail stores must not mislead customers when it comes to the signing of new mobile contracts – including mobile broadband deals.

The networks are also required to put in place measures to prevent mis-selling, as well as mechanisms for fining those retailers that fail to adhere to the new rules. However, the networks have warned that the new rules could lead to more dealers – including IT resellers making their first tentative steps into the market – being struck off.

The regulations require that all staff check that the new customer is authorised to enter into a new contract, as well as getting all appropriate information at the point-of-sale. Networks will also be expected to carry out due-diligence checks on all retailers.

Source: Mobile News