26 October 2007
Telecoms industry regulator Ofcom announced plans yesterday to tackle the increasing problem of 'slamming' among mobile phone salesman.
The watchdog's Chief Executive, delivering his annual lecture, said that consumer complaints on the matter had doubled in the first half of 2007 - with 400 complaints per month being registered this summer.
'Slamming' involves potential customers being cold-called by unscrupulous salesmen and offered various deals on their phone, such as a free upgrade.
However, this often results in those who agree to the offers being locked-in to a long-term contract at disadvantageous rates.
Currently, the mobile phone industry operates under a voluntary code to protect consumers from such practices, which places the regulatory onus on mobile phone operators themselves - a practice which Chief Executive of Ofcom Ed Richards hinted might soon be toughened-up.
"The problems of fixed line mis-selling now appear to be being replicated in the mobile world," he said.
Ofcom has now launched a review of the code - and if it is found to not offer sufficient protection, the regulator will "have no choice but to set mandatory standards backed up by the full weight of [its] powers," Mr Richards added.
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