Ofcom targets "unfair" broadband charges

Communications watchdog Ofcom has proposed new guidelines to prevent broadband providers from adding unfair additional charges to consumers' bills, reports say.

According to Comms Dealer, the planned guidance will lay out Ofcom's interpretation of the law and what providers need to do to comply.

The site says providers will be required to be clear and upfront about their charges and they should also help consumers to understand them. Furthermore, where charges are made outside of the main service price, they must demonstrate that they are fair.

Some providers currently make additional charges for things like paying by cash or cheque rather than Direct Debit, consumers cancelling contracts before the minimum agreed term is up and late subscription payments.

Ofcom chief executive Ed Richards said the guidance would ensure that customers get a "fair deal" by obliging providers to tell them the full cost of their service.

"In addition, our proposals mean that, in some cases, additional charges will be subject to clear limits which would provide direct protection for consumers," he added.

Established in 2002, Ofcom is responsible for regulating the United Kingdom's communications industries, including the television, radio, telecoms and broadband sectors.