TalkTalk has been accused of misleading customers after announcing a £2-a-month price increase for those who signed up to fixed-price broadband contracts. The rise, effective from 1 April, amounts to an extra £24 per year and has sparked fury among users who believed they were protected from mid-contract hikes.
Anthony Belcher, an eight-year TalkTalk customer from near Warwick, signed an 18-month contract last May at £23.50 per month, with assurances of no mid-contract price rises. He described the company's decision as 'outrageous' and 'sharp practice'. TalkTalk's community forum has seen a 19-page discussion of the increase, with some customers reporting the firm to the Competition and Markets Authority and the Advertising Standards Authority.
TalkTalk blamed the rise on increased costs due to the Covid-19 crisis and a 40% surge in broadband usage. The company also announced that from 2022, prices will rise annually by 3.7% plus inflation, aligning with rivals. It has launched a new 'Fixed Price Plus' contract, promising to honour its terms.
Ofcom stated that TalkTalk had not broken any rules, calling the increase a 'commercial decision'. Customers have 30 days to leave their contract without penalty if they are unhappy. Some customers have reported being offered better deals to stay, raising questions about the necessity of the price rise.
