Dublin: A new law that would allow mobile and broadband customers to cancel their contracts without penalty if their provider raises prices is expected to move forward, as the Cabinet considers the proposal today.
The bill, introduced by Communications Minister Patrick O’Donovan, seeks to protect consumers from unexpected or unfair rate increases embedded in telecom contracts. At present, many providers use In-Contract Price Increase (ICPI) clauses, allowing them to raise prices annually—even within a fixed-term contract—without granting customers the right to switch providers without a penalty.
Two Price Hikes Possible in a 24-Month Contract
Under current rules, companies can raise prices twice during the maximum legal contract term of 24 months. These increases, often announced during the summer, leave customers locked in unless they pay exit charges. Opposition parties have criticised this system, arguing that unclear pricing commitments amount to exploitation.
Key Provisions of the Proposed Law
If approved by ministers, the legislation would introduce major consumer protections, including:
- Mandatory advance notice: Providers must inform customers at least 30 days before a price hike takes effect.
- Penalty-free cancellation: Customers may exit their contract without charges during the notice period.
- Extended withdrawal rights: Consumers can leave from the moment they receive the notice up until the effective date of the increase.
Telecom companies are expected to push back against the measures, but the government insists the plan offers a balanced approach. The goal, officials say, is to give consumers fair flexibility and the ability to switch to more affordable services during a time of rising living costs.
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