31 December 2007
Increasing amounts of "stealth" charges from internet service providers are to be investigated by regulators Ofcom, it has been reported.
Market competition has led some providers to make eye-catching cheap offers to new customers in the hope of drumming up business.
However, some customers feel that the firms are getting their money back in other ways - such as charging for customer service through premium-rate helplines, billing customers extra for not using Direct Debit or for paying bills late.
The investigation has been triggered by what the Times terms a "surge in complaints" from broadband and mobile phone users to the watchdog over the hidden nature of such charges.
Steve Weller at uSwitch commented: "All these companies are competing on headline prices and are bringing those down, but they are then having to recoup their costs via other ways."
Ed Richards, Chairman of Ofcom, added: "Consumers of communications services see headline prices fall, but they must not be misled…they need confidence that any additional charges are fair, transparent and justified."
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