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WHSmithnet/Virtual
ISP Services Limited - unfair contract terms
Complainant:
Oftel own-initiative investigation
Complaint against: WHSmithnet/Virtual ISP Services Limited
Case opened: 14 February 2003
Case closed: 28 April 2003
Issue: Unfair contract term
Relevant Instrument: Unfair Terms in Consumer Contracts
Regulations 1999
The WHSmithnet
internet package is introduced by WHSmith but is provided by Virtual
ISP Services Limited ("Virtual ISP"), formally known
as Affinity Internet Limited. Oftel opened this case as it considered
that clause 13 of WHSmithnet's 24/7 Internet access contract may
have been unfair. There was a possibility that if charges were
increased beyond RPI during the minimum term, a consumer who terminated
during this term would have been liable for the increased charges
during the rest of that term.
The terms
and conditions of the WHSmithnet contract have been amended to
reduce the minimum term from 3 months to 1 month. This would mean
that any new term (including a new charge) could not be introduced
during a minimum term as notice for new terms is also 1 month.
Oftel's view
is that clause 13 would no longer be potentially unfair according
to the UTCCR 1999 (though it has no power to "clear"
contract terms nor should Oftel be regarded as having approved
terms). Oftel is of this view because any consumer who terminated
during the minimum term would never have to pay a new charge beyond
RPI after termination to the end of the minimum term (as it would
not take effect until after the minimum term).
Case Leader:
Katherine Dinsdale (020 7634 5358 e-mail:
katherine.dinsdale@oftel.gov.uk)
Case reference: CW/00595/03/03
Text
published when the case was opened.
WHSmithnet/Affinity
Internet Limited - unfair contract terms
Complainant:
Oftel own-initiative investigation
Complaint against: WHSmithnet/Affinity Internet Ltd
Case opened: 14 February 2003
Issue: Unfair contract term
Relevant instrument: Unfair Terms in Consumer Contracts
Regulations 1999
Oftel is concerned
that clause 13 of WHSmithnet's 24/7 Internet access contract may
potentially be unfair. This says that in the event that WHSmithnet
increases its charges, consumers who terminate the contract during
the minimum term will incur charges for the remainder of that
term, even if the increase in the charges is more than RPI. The
Internet access package is provided direct to customers by Affinity
Internet Limited.
Case leader:
Katherine Dinsdale (020 7634 5358 e-mail:
katherine.dinsdale@oftel.gov.uk)
Case reference: CW/00595/03/03
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