MSE News: O2 to hike its prices by 2.7% - can you leave your contract penalty-free?

gjchester

GolfBravo wrote: »

According to GC9.6 and EU regulations, as a result of price increase, you are entitled to cancel the contract with no penalty.

There is no such thing as EU Law. The EU issue directives and regulations that the Countries Government has to enact into law, but until the country does so its not legally binding. Usually it happens quickly but some EU directives have been issues years ago but not found their way onto UK books. Anything the EU says cannot be used directly, it has to be in the UK laws too.


That said didn't Ofcom introduce this regulation and say it was on new contracts after a set day (Middle of Jan I think) There was no provision for it to apply to anyone who had a contract form 2013. For a while there may be people who CAN be subject to a price rise mid term, at least until 2 years have passed and everyone is on a new contact that will be after the Ofcom date.

GolfBravo

gjchester wrote: »

The EU issue directives and regulations that the Countries Government has to enact into law, but until the country does so its not legally binding.

Ofcom General Condition 9.6 is such a law.

Since at least 2012 GC 9.6 rule requires providers to give customers a minimum of 1 month’s notice concerning any change likely to be of material detriment. Customers receiving such a notice are allowed to leave a contract penalty-free.

Lifes_Grand_Plan

GolfBravo wrote: »

The Ombudsman is looking at the wrong issue here. The price increase is, surely, a commercial decision - however, my complaint is not about the price increase. The issue is that O2 are not automatically offering to end the contract due to price increase. According to GC9.6 and EU regulations, as a result of price increase, you are entitled to cancel the contract with no penalty.

PS
O2 cut and paste reply email received today. Complaining to the Ombudsman tomorrow.

This is exactly the line we took with CISAS over the EE price increases and eventually after a fight we got them to take up the complaints. Don't give up guys, if all of you fight this tooth and nail then the ombudsman will be forced to do something.

Have a look at the EE thread - a poster called Random Curve made the lives of CISAS hell (in a legitimate way) and proved them wrong time and again until they had to act.

The price rise is a commercial decision, the refusal to let you cancel (if you should be allowed to by the T&C's) is not and is what you need to challenge.

JasonLVC

gjchester wrote: »

There is no such thing as EU Law. The EU issue directives and regulations that the Countries Government has to enact into law, but until the country does so its not legally binding. Usually it happens quickly but some EU directives have been issues years ago but not found their way onto UK books. Anything the EU says cannot be used directly, it has to be in the UK laws too.


That said didn't Ofcom introduce this regulation and say it was on new contracts after a set day (Middle of Jan I think) There was no provision for it to apply to anyone who had a contract form 2013. For a while there may be people who CAN be subject to a price rise mid term, at least until 2 years have passed and everyone is on a new contact that will be after the Ofcom date.

EU law over rides UK domestic law, even where UK domestic law does not "enact" Eu law.

Its called "Direct Effect" and allows individuals to envoke EU law above and beyond that of domestic law. Sure, it means taking the case to the European Courts instead of the domestic ones but point is, EU laws can be acted upon even in the absence of mirroring UK legislation.

Not sure if one would want to use Direct Effect over the matter of a 50p increase but in theory, its doable.

More details here :- http://europa.eu/legislation_summaries/institutional_affairs/decisionmaking_process/l14547_en.htm

parrysite

Has anyone had any more answers from the ombudsman?

NittyGritty

my friends not heard back from them yet, but its not been 10 days yet, will update once I hear from him weather they took his side or not.

AlwaysConfused

Ombudsman still saying it's a commercial decision and refusing to expand further than the word 'commercial'.

completely ignoring any reference to Ofcom general conditions. seems they also enjoy good old cut&paste.

I've asked very politely once again for clarification of their decision and the possibility of a review based on lack of transparency.

my breath is not being held...

V_For_Verminator

AlwaysConfused wrote: »

Ombudsman still saying it's a commercial decision and refusing to expand further than the word 'commercial'.

completely ignoring any reference to Ofcom general conditions. seems they also enjoy good old cut&paste.

I've asked very politely once again for clarification of their decision and the possibility of a review based on lack of transparency.

my breath is not being held...

That will be the end of the road won't it?

AlwaysConfused

I'm not so sure it's the end, as GolfBravo said earlier the challenge isn't to the increase its to the refusal to acknowledge , or even consider that general condition 9 exists.

If the ombudsman comes back with an actual explanation which backs up their stance then I'll accept it. but right now they are focusing on the price increase and act as if nothing else has been raised.

I'm going to take Life's Grand Plan and look at the EE thread and at least try to get one of these mythical responses based on 'fair and transparent' reasoning the Ombudsman seems to provide when the moon is blue and the leprechauns are free with their gold.

streather

AlwaysConfused wrote: »

Ombudsman still saying it's a commercial decision and refusing to expand further than the word 'commercial'.

surely pretty much everything a company does can be defined as a commercial decision?


so basically the ombudsman is about as useful as a chocolate teapot?