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    New rules for mobile phone cashback offers top be brought in this summer by OFCOM

    Here's what I consider to be the important parts of the article. Go here to see the full thing:
    news.bbc.co.uk/1/h…stm

    Telecoms regulator Ofcom has vowed to crack down on the mis-selling of mobile phones after the failure of a voluntary code of practice in the industry. It will now take tough action to prevent cashback offers which fail to pay out and cases of false information offered when buying a contract. Firms that don't comply with the rules will be fined 10% of their turnover.

    Ofcom said "unacceptable practices" by some mobile phone companies and third-party agents had led to proposals for mandatory rules. "Strong competition is no excuse for marketing malpractice," said Ofcom chief executive Ed Richards. "We warned the industry last year that unless it cleaned up its act we would consider introducing new rules. The facts show that this has not happened, so we are now proposing tougher measures to protect consumers from unacceptable sales and marketing practices."

    It is proposing a general condition for mobile operators "not to engage in dishonest, misleading or deceptive conduct" and to ensure those selling their products and services do the same. It also covers fair terms and conditions on cashback deals, correct information at the point of sale, and that mobile companies conduct checks on retailers. Any company found to be breaching the new condition could be fined up to 10% of turnover.

    Ofcom is consulting on the plans which it wants in place by the summer.

    3 Comments

    Good news I guess, as long as it doesn't mean that all the 12 months free offers dry up!

    Original Poster

    Benjimoron;1740271

    Good news I guess, as long as it doesn't mean that all the 12 months free … Good news I guess, as long as it doesn't mean that all the 12 months free offers dry up!



    In all fairness, it probably will. :-( But hey, they get voted cold anyway.
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