HomeInsightsOfcom issues Statement on Updating and clarifying customers’ right to exit contracts for broadband services

Under Ofcom’s voluntary Broadband Speeds Codes of Practice for residential and business customers respectively, providers must be upfront with customers about what speeds to expect during peak times and give a minimum guaranteed speed before they sign up.

In May 2022, Ofcom consulted on minor changes to the Codes of Practice, proposing to update both the residential and business codes so that the definition of a bundle is aligned with Ofcom’s revised General Conditions of Entitlement (revised GCs).

Having reviewed the responses to the May 2022 consultation and taken them into account, Ofcom has decided to update the Codes, with these updates coming into force on 21 December 2022.

Ofcom has decided to amend the definition of a “bundle” in the Residential Broadband Speeds Code of Practice (the Residential Code), so that the customer’s right to exit will apply to their broadband and bundled services in the same way as their right to exit will apply to their contract and bundled services, as set out in the revised GCs.

Ofcom has also decided to amend the definition of a “bundle” in the Business Broadband Speeds Code of Practice (the Business Code) for small businesses (those with ten or fewer employees), so that their right to exit will apply to their broadband and bundled services in the same way as their right to exit will apply to their contract and bundled services as set out in the revised GCs.

For larger businesses, Ofcom has decided to retain the existing Business Code’s definition of a “bundle” to ensure the existing protections continue.

Any necessary changes to comply with the amendments to the Codes should be implemented by existing signatories by 21 December 2022.

Ofcom says that these decisions will help to provide a consistent set of rules (based on the revised GCs) relating to bundles and who they apply to, making them easier for customers to follow and more straightforward for broadband providers to implement. The simplification should also reduce the likelihood of misunderstanding or misinterpretation should disputes arise, to the benefit of both customers and broadband providers, Ofcom says.

The amended Codes will come into force on 21 December 2022 and Ofcom will then monitor signatories’ implementation and compliance. To read Ofcom’s Statement in full, click here.