Stuart Corner
Tuesday, 03 October 2006 12:20
IT Policy -
Regulation
Page 1 of 2
The Telecommunications Industry Ombudsman has warned service providers against referring to phone plans as being "capped" when in fact there is no upper limit on customers' spending.
The term is widely used, particularly in mobile plans where customers pay a fixed amount per month regardless of the number of calls they make until the total cost, at a notional tariff, exceeds a figure well in excess of the cap amount, after which all calls are charged at that notional tariff.
"Rather than being a cap, these plans often have no spending limit and people can be charged for amounts far in excess of any cap," said Ombudsman John Pinnock. He said he was also concerned about the use of terms such as "unlimited" and "free" when they were used to sell telephone and Internet products and services.
Pinnock said consumer were also confused into believing that a cap applied to all types of services available under the plans - eg voice, SMS and data - when in fact this was not always the case.
When considering complaints about products or services that had been described as capped, unlimited or free, the TIO office would assess "whether it was fair and reasonable for a consumer to have assumed that the every day meaning of the term applied," Pinnock said.