Ofcom cashback rules could hit dealers

Ofcom's new rules to protect consumers from mis-selling and failed cashback providers are likely to hit smaller dealers, according to the UK's mobile networks. The proposed rules, known as General Condition 23, were announced in March and are due to be implemented this summer. Networks will be liable for the practices of third parties and can be penalised up to 10% of their annual turnover for failures. Last week 3 said the new rules would cost it in the region of £1 million, forcing it to cut its dealer channel, with T-Mobile adding that the costs involved would be “extremely high and disproportionate". Ofcom is currently looking at all responses to its proposal and is expected to publish a further statement in July 2008. [Sources: Mobile News; Ofcom PDF]