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

Robin2712

How can this be legal !!!!!!
Surely this should of been pointed out at the time and now the law has been changed so that they have to inform customers so they quickly try and get as much money as they can out of existing contacts !!!! I am livid how can this be fair - money grabbing as soon as I can I will take my four contracts from O2 and hopefully find a decent provider who doesn't try and con it's customers ....... Sounds like the PPI scandal to me - what happens to the customers who can't afford it ! O2 you should be ashamed however much you try and con us with investment in technology excuses - shameful

DUTR

Robin2712 wrote: »

How can this be legal !!!!!!
Surely this should of been pointed out at the time and now the law has been changed so that they have to inform customers so they quickly try and get as much money as they can out of existing contacts !!!! I am livid how can this be fair - money grabbing as soon as I can I will take my four contracts from O2 and hopefully find a decent provider who doesn't try and con it's customers ....... Sounds like the PPI scandal to me - what happens to the customers who can't afford it ! O2 you should be ashamed however much you try and con us with investment in technology excuses - shameful

It's legal because it has always been there in the T&Cs.

Rev

I wonder how this effects those in the refresh contracts.

Since the airtime and phone contract are separate but to close the contract you have to pay the rest of the phone off.


So what if someone isn't happy with the price rises and wants to cancel?

[Deleted User]

I do look forward to telling O2 where to shove their price rises when it comes to renew my wife's contract soon.

chambta

I took a two year 'fixed' contract out in May 2012 so this is the second price increase they've imposed on me. Suffice to say I'm unlikely to stay with them.

neil40

Move to giffgaff or Tesco who both use o2's network but prices will never be like o2.

sharkyboy_2

I upgraded to an iPhone 5s in a Carphone Warehouse, I certainly wasn't told of price rises!
How does that affect my position, to argue against the price rise, I'm already paying enough!
This was in Oct/Nov 2013.

GavChap

Rev wrote: »

I wonder how this effects those in the refresh contracts.

Since the airtime and phone contract are separate but to close the contract you have to pay the rest of the phone off.


So what if someone isn't happy with the price rises and wants to cancel?

You can't cancel! I'm on O2 refresh myself, when I signed up there's a bit in the contract that says they can put up the price once every 12 months, but it's just the airtime plan that's going up. The phone plan stays the same.

DUTR

sharkyboy wrote: »

I upgraded to an iPhone 5s in a Carphone Warehouse, I certainly wasn't told of price rises!
How does that affect my position, to argue against the price rise, I'm already paying enough!
This was in Oct/Nov 2013.

A large prtion is for the handset you had on credit. You will get told, I had my email this morning

[FONT=&quot]At O2, we want you to have the best digital experience possible. That's why we're always investing in the best technology.[/FONT][FONT=&quot][/FONT]

[FONT=&quot]We're already making this happen. But with the current Retail Price Index (RPI) rate of inflation at 2.7%, the cost of everything is going up. As a result, we're adjusting the price of your tariff in line with RPI. This means when you get your March 2014 bill, it will be updated from £21.07 to £21.63. [/FONT][FONT=&quot][/FONT]

[FONT=&quot]You'll also see some changes to our other charges, such as for calls and texts if you go over your monthly allowance, international calls and MMS. To see what this means for you, go to o2.co.uk/prices.[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Kind regards[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Martin Bould
Head of Consumer Marketing[/FONT][FONT=&quot][/FONT]

JasonLVC

Question to the OP.

Your linked article seems to reproduce the legal wording that O2 use on their website. Where is the journalistic view to this news?

For a website that prides itself on consumer issues and having been so successful with bank charges, PPI and similar in the past, why such as laid back attitude to this situation.

Ofcom "material detriment" as quoted below seems to suggest that any change in the core price is of material detriment except for increases in VAT.

Not everyone on MSE are lawyers or get on with legalspeak and so surely the forum should be looking for ways for people to get out of contract rather than suggesting o2 have a slam dunk case?

http://stakeholders.ofcom.org.uk/binaries/consultations/gc9/statement/guidance.pdf

"A1.10 Ofcom is likely to treat any price increase4 to the agreed core subscription price (however constructed and described in the contract terms)5 during the fixed term of a telecommunications contract as a modification that is of, or is likely to be of, material detriment to consumer and small business subscribers for the purposes of GC9.6.6 7 The core subscription price is one of the most important factors in the subscriber’s choice of contract. It is likely to be the most important aspect of one of the key terms of the contract. There is likely to be a significant possibility that the subscriber would not have entered into that contract had they been bound to pay a different price to that they agreed. "

A1.8 and A19 seems to suggest that contracts will typically have a a clause allowing RPI increases but concludes that these are often buried deep within the T&C's and not prominent on the headline core price and so can be disregarded in terms of cancelling contracts. So whislt the contract says it can increase by RPI, it is an unfair term because it is not clearly shown.

I know we've been here before with Orange and EE and TMobile but that was before when OFCOM had not clarified their understanding, so nothing has actually changed other than definitions but its most unlike MSE to be so defeatist