Dan Warne07 February 2007, 5:44 AM
Too many ISPs are fiddling with the speed, download limits and other contractual obligations of broadband internet services, the Ombudsman said today.
The Telecommunications Industry Ombudsman John Pinnock said today he was concerned about the growing number of complaints from internet customers who had had their contracts changed without their agreement.
Internet service providers are often not aware of their legal obligations in circumstances where they vary terms and conditions of their customers' fixed-terms contracts without first seeking agreement from customers, the Pinnock said.
"Most ISP's require customers to sign fixed-term contracts before they can receive a service," Pinnock said.
"Customers are telling us that often, after a short period of the contract has elapsed, they have received notification from their provider that the price of their plan will increase or that the speed or usage limits will be reduced."
According to the industry Consumer Contracts Code (developed with input from the service providers), a fixed-term contract may only be varied without the customer's agreement if the ISP gives the customer written notice three weeks before the change and the opportunity to cancel their service without fines.
"For example, an internet service provider may significantly lower the usage limits of its broadband plans and then seek to charge customers an early termination fee if they wish to cancel," Pinnock said.
"In these circumstances, the provider would be expected to offer customers appropriate notice and the chance to cancel without incurring fees for breaking their contracts."
The Ombudsman added that if a customer wanted to leave a contract where the terms and conditions had been varied without their consent, and to their detriment, the ISP could only recover any usage, installation and access charges outstanding at the date the contract ended.
If customers wanted to exit a contract which was being modified against their will, they could only be charged for equipment costs if that equipment could be used with another provider, Pinnock said.
All internet service providers are required by law to be members of the Telecommunications Industry Ombudsman Scheme, which is entirely funded by ISPs depending on how many complaints, and the serverity of the complaints they get.