A ban from Ofcom of auto renewing telecommunications comes into force from today (for new customers), meaning that consumers and businesses alike can no longer be locked into a further contract upon reaching their current expiration date - a practice that has always been ethically questionable for the providers that have used them, and has attracted many complaints alike to Ofcom from consumers who wanted to switch provider but were unable to do before a further contract term expired.As I blogged back in September when the news came out, at worst a customer on a BT 2 year contract could have actually ended up being locked in for 4 years:
The practice has been widely criticised by consumer groups and consumers alike - at its worst someone forgetting to opt out at the end of a 2 year contract can be committed to their provider for a further 2 years (i.e. they can't change provider in 4 years overall) - and the regulator has agreed that it stifles competition.From today no new customers can be entered into the contracts and from a year from today they can also no longer apply to any existing customers.
It is thought that as many as 1.5 million of BT's existing customers are on auto renewing contracts.
















































