Increase in Tariff Cost

[Anonymous]

Can someone please clarify for me.....

I have received an email to say that the tariff i am on will soon increase in cost.  I took out a 24-month contract with O2, so am shocked to see that the cost is increasing!!  Does this not completely go against the point of having a contract??  All of the terms are clearly stated (i.e. the cost per month, the term, who and when...) and then signed. 

Unless someone is about to copy and paste the tiniest piece of smallprint in the world, i think we're all being had!!  If O2 can increase is by 50p today, can they increase it by £50 tomorrow??

And, if they can make changes, can i change my contract duration to say, 1 month??

[Liquid]

I'm really confused what this "principles" thing is everyone keeps mentioning haha.

[Anonymous]

The media have really done there job well with this one. They have people eating out of there hands......

[perksie]

Even Moneysavingexpert.com didn't get it right and left out the bit about the possiblilty of an inflation rise, other than that it wasn't a bad review:

http://www.moneysavingexpert.com/news/phones/2012/12/o2-raises-prices-for-7-million-mobile-customers

[Anonymous]

As many have said this is not about the money. It's the principle. Having read through these posts and the many O2 apologists talking about how it's in the contract and everyone else has done it etc. they have missed the point. O2 have simply joined the legions of large companies who screw over existing customers.

It might be in the contract but the fact is (and I speak as someone who makes a living writing and reviewing contracts) if you have to resort to the contract it means trust and goodwill has broken down. I write contracts in the hope that I will never have to refer to them (but they're water-tight just in case!) I do business with my customers on the basis of mutual trust and respect. This is not the O2 way and that is why people will walk (regardless of whether the grass is actually greener). 

In my local O2 store (Winchester, Hants) where I was sold my phone they only had a copy of the abreviated terms and conditions. They could not even find the full copy. I was more familiar with the full Ts and Cs than the store manager. So the question is can a typical customer be reasonably expected to read and understand the full Ts and Cs? The answer is definitely not. If the store manager hasn't read them then they cannot expect the average customer to (they clearly don't restrict sales to the well educated and legally minded). Which raises the question of mis-selling. But good luck with that one! 

In response to the person who said the terms are on the bottom of every page of the website - They are not! The "Latest" terms are - but these are not the ones I agreed to, nor do I recall being properly informed that the terms that I signed have been changed to these.

[Liquid]

They only notify of significant changes.

So far there have been none.

As much as I agree with some of your comments you can understand my scepticism of your career, we get people who change jobs daily to suit their latest complaint and every other person is a lawyer.

If you write contracts such as these then you know that contracts are written to be fair to both parties however significantly favouring one side. These contract as you eloquently put it are water tight for the very reason that the people are complaining.

Since you review these documents can you please have a review of your own and see if the term "fixed price" is made in reference at any point in your contract?

This isn't personally aimed at you, please don't misinterpret me, just raising points.

[Anonymous]

I am not a lawyer, I run a company and regularly negotiate a range of different contracts (with customers, suppliers, contractors and employees) thankfully not the mass market retail types like these.

I have never been under the illusion that it is a fixed price contract. But there are a number of ways that O2 could have handled this that would have been less inflammatory (raising prices for new contracts 6 or more months ago so new contracts are not disproportionately shafted, then phasing in existing customers later for example).

My main gripe is that where large companies are selling to individuals it is a one way street and very hard to challenge. As you say the contracts should be fair to all parties but there are many items in these contracts that are open to interpretation ("fit for purpose" "fair wear and tear" etc.) and it is impossible for the average person to actually test whether O2s interpretation is fair and reasonable.

My experience has been that barely a passing mention was made to the contract during the sales process but when I later had problems O2 were very quick to use use the contract to justify their refusal to help me in any way at all (a story for another time).

[perksie]

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@Anonymous wrote:
In response to the person who said the terms are on the bottom of every page of the website - They are not! The "Latest" terms are - but these are not the ones I agreed to, nor do I recall being properly informed that the terms that I signed have been changed to these.

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Those terms haven't changed in the almost five years I've been with O2, which is one reason why I won't sign a contract, neither do you have to be informed, it's up to you to check them before you sign up.

[Anonymous]

What is even more interesting is that this "inflation" price increase seems to be only for current customers and not across the board to include new customers. 

I'm on the "On & On" £36 per month package and this very package is still available at this very price but 02 have decided, that as a current and loyal 10 year customer, they are going to increase my tariif by £1.25 but sell the same tariff to a new customer cheaper.

Yeah that just makes loads of business sense.  A sign of the times and a sign that 02 has started on the slippery slope downwards.

I appreciate that companies costs are also rising and in order to maintain huge profits for their shareholders they must pass these costs on to the customer but to do that whilst someone is in a contract is woeful customer service at best and I am convinced that in the long term this will cost 02 dearly. 

This appears to be a game of 'screw the ones we have in contracts whilst keeping prices reduced for new customers' and is a very short term, money junkie attitude that will reap the product of the seeds sowen.

[Anonymous]

See its posts like your one they really annoys me as you have come onto the forum written out a well balanced post but have all the facts wrong making your post a waste of space. 

The price increase does not take effect until February 28th 2012 so until that date of course the tariff prices will be the same on the website.

You then mention company costs rising and in the same breath say mantain huge profits for shareholders, well you have the first part right but not the second. Telefonica are multiple billions of pound in debt, share prices have had a thrid knocked off of them and no dividends have been paid out.

As all the other phone carriers have already done there price increase and in some instances twice all the O2 principled customers thet leave will leave to a company that will be increasing there prices again whilst all those customers that can leave from the other carriers will come to 02. 

p.s You sure you have your maths correct?

[Anonymous]

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perksie wrote:

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Those terms haven't changed in the almost five years I've been with O2, which is one reason why I won't sign a contract, neither do you have to be informed, it's up to you to check them before you sign up.

I'm talking about contract variation during the term not at sign up. The point is that the terms that are published on the website and quoted by O2 are not the ones I signed years ago. It turns out that what you agree to at sign-up is actually irrelevant:

20. Changes to the Agreement
20.1 We can make reasonable changes to this Agreement at any time. All changes will be posted on our Website. Please check regularly for updates.

20.2 If we change the terms and conditions of this Agreement to your significant disadvantage (in our reasonable opinion) we’ll give you 30 days' notice in writing before the changes take place. We’ll notify you as detailed in paragraph 19 above or we may notify you by text (SMS) to your Mobile Phone number and/or by email.

My point was that O2 have it in the contract that they CAN vary the terms and THEY determine whether any changes are to my significant disadvantage and therefore whether they have to notify me. Who is to say that O2's opinion is reasonable and seriously, who checks back regularly to see if O2 have made changes which they didn't consider significant enouogh to tell you about? (I do have a particular case in mind but I don't want to recall it without checking the facts).