Ref: 17/00
Date: 23 March 2000

Oftel has today set out how it will use new powers to help protect consumers from unfair contracts with their telecoms service provider.

Under the new powers the Director General of Telecommunications will be able to take action against service providers to amend or remove inappropriate or unfair terms within their contracts with customers.

Oftel’s statement sets out the type and quality of information that service providers must include in their contracts. This includes the types of maintenance service offered and compensation or refund arrangements for subscribers if the contracted service is not met.

David Edmonds, Director General of Telecommunications said today:

"Telecoms companies have a duty to consumers to set out the service they are providing within their contract in clear and unambiguous terms.

"Consumers should not be taken by surprise by hidden terms and penalty clauses. Clear and understandable contracts will give consumers more confidence when shopping around for the best deals."

The statement sets out how consumers can make complaints and how Oftel would carry out any investigation. Oftel will decide whether any change would be in the interests of all relevant consumers before taking action.

This information is available on the consumer pages of Oftel’s website at www.oftel.gov.uk/crs/faq.htm along with other frequently asked consumer questions.

Specific disputes between customers and their telecoms service providers can still be pursued through the courts or existing dispute resolution procedures.

Notes for Editors

1. The statement Telecom Service Contracts is available from Oftel’s website. Copies are also available to the media from Oftel’s Press Office on 0171 634 8991 and to the public from Oftel’s Research and Intelligence Unit on 0171 634 8761.

2. The powers covered in the statement stem from the implementation of two government regulations: the Unfair Terms in Consumer Contracts Regulations, 1999 and the Telecommunications (Open Network Provision)(Voice Telephony) Regulations, 1998.

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