BT is to be investigated by industry regulator, Ofcom, over compliance with its obligation to provide customers with clear and simple contract information before they sign up for a new deal.
Since 17 June 2022, telecoms providers have been required to give customers contract information and a short – usually one-page – summary of the main contract terms before signing up, the regulator said.
The summary must include key information about the price, length of the contract and the terms and conditions if a customer decides to end their contract early.
Ofcom has already launched an investigation into EE but has “since received information giving us reason to suspect that Plusnet – another BT subsidiary – may also have failed to comply with these requirements.”
“As a result, our investigation will now consider if BT has breached Ofcom’s rules because of suspected breaches by each of these subsidiaries,” the regulator said.
Ofcom started to look at EE in October but has expanded the probe to include Plusnet after receiving further information about potential breaches.
Prices of contracts have soared this year as they are linked to the consumer inflation price index plus 3.9%.
Prices at BT, Vodafone and Three will go up by 14.4% in April following a jump in inflation to more than 10%.
Virgin Media O2 face even higher hikes as their contracts are linked to the RPI, which has gone up even more.