Government aims to cut red tape in broadband sector

The government has announced that it will investigate hidden prices charged by the UK’s broadband providers. 

 


The government has announced that it will investigate hidden prices charged by the UK’s broadband providers. 

The Department for Culture, Media and Sport has said that it will attempt to save families money by revealing the true costs of broadband subscriptions. 

This includes charges such as confusing, poorly advertised discounts as well as line rental fees. 

The government has predicted that it could potentially save people £470 a year in overall utility bills by revealing hidden costs and removing “red tape”. 

In the announcement, the department said that providers needed to be fully transparent in order to serve customers fairly. 

“Customers rely on adverts to choose the right broadband product for them. They should not be misled.”

"The government wants to ensure consumers understand the full cost of a contract and are not misled by teaser rates.”

Introductory rates were cited as one of the most prominent issues in the broadband sector, with providers offering a temporary discount then upping the price without notifying the customer. 

The Advertising Standards Agency has also initiated its own research and will soon begin looking into whether some broadband deals are misleading customers. 

The investigation is thought to start in January 2016 and aims to publish figures in the spring of that year.

Source: USwitch

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