Ofcom proposes clampdown on mobile mis-selling

Ofcom is proposing a change to the law surrounding mis-selling mobile phone services. Its proposal covers customers being given incorrect information, 'slamming' (where consumers are committed to a new contract without their consent) and cashback schemes.

The new rules will require mobile service providers:

• not to engage in dishonest, misleading or deceptive conduct and to ensure that those selling their products and services do not mis-sell;
• to make sure the customer is authorised to, and intends to, enter into a contract;
• to make sure customers get the information they need when they buy the product;
• to ensure that the terms and conditions of all sales incentives offered by their retailers are not unreasonable; and
• to carry out due diligence and checks to ensure the soundness of their retailers.

Ofcom says these new rules - if implemented - will let them formally investigate complaints and impose sanctions for breaches of the regulations. They'd like feedback on their proposal by 29 April 2008.