UK telecoms regulator Ofcom has announced plans to ban “confusing” inflation-linked price rises and increase transparency around mid-contract prices for mobile, broadband and pay-TV services.

Instead, the regulatory body is demanding for consumers to be fully aware of the prices they would pay upfront at the start of their contracts.

This comes as Ofcom revealed, as of April this year, around four in 10 broadband customers and over half of mobile customers were on contracts subject to inflation-linked price rises.

Subscribe to Mobile Marketing Magazine

Click here to get the latest marketing news free in your inbox every Thursday

However, it added that only 12% of mobile customers and 16% of broadband customers were aware of the price rise and able to identify that it was inflation-linked.

As a result, it received over 800 complaints related to price rises between January and October this year, double the number in the same period in 2021.

Ofcom CEO Dame Melanie Dawes said: “At a time when household finances are under serious strain, customers need prices to be crystal clear.

“Most people are left confused by the sheer complexity and unpredictability of inflation-linked price rise terms written into their contract, which undermines customers’ ability to shop around.

She added: “Our tougher protections would ban this practice once and for all, giving customers the clarity and certainty they need to secure the best deal for their needs and budget.”