New rules impact mobile broadband sales ? networks warn of dealer cutbacks

Ofcom sets out new contract regulations

Ofcom has told networks they must fine retailers that fail to adhere to guidelines set out by the regulator regarding mis-selling of contracts.

The new regulations – which are due to come in this September – state that mobile networks and staff of direct and non-direct retail stores must not mislead customers when it comes to the signing of new mobile contracts – including mobile broadband deals.

The networks are also required to put in place measures to prevent mis-selling, as well as mechanisms for fining those retailers that fail to adhere to the new rules. However, the networks have warned that the new rules could lead to more dealers – including IT resellers making their first tentative steps into the market – being struck off.

The regulations require that all staff check that the new customer is authorised to enter into a new contract, as well as getting all appropriate information at the point-of-sale. Networks will also be expected to carry out due-diligence checks on all retailers.

Source: Mobile News

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