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Price increases during fixed term contracts
- Thread starter JustinB
- Start date
The ISP...
ISP..?
Internet service provider....? Aren't we talking about cellphone contracts here...?
Sorry SP.
Ah Ok. Thought I was maybe missing something.
I understand that companies can increase the prices legally but I think this is something which should be regulated otherwise it can be abused.
Scenario:
A consumer signs up for a 10Gbps uncapped fibre connection on a 24 month contract at R10,000 per month.
Three months into the contract the service provider hikes the price to R20,000 per month and the consumer can no longer afford to pay for the service.
The consumer hasn't got the money to cancel the contract and pay early termination fees either (over R100,000 for early cancellation).
Clearly the consumer is not at fault and the service provider is to blame.
This is an extreme case to emphasis that I do not think that increases during a contract are entirely above board.
There should be law preventing prices being increased inside the contract period above CPI or an opt out clause (without punitive penalties) should the consumer no longer be able to afford the service.
Scenario:
A consumer signs up for a 10Gbps uncapped fibre connection on a 24 month contract at R10,000 per month.
Three months into the contract the service provider hikes the price to R20,000 per month and the consumer can no longer afford to pay for the service.
The consumer hasn't got the money to cancel the contract and pay early termination fees either (over R100,000 for early cancellation).
Clearly the consumer is not at fault and the service provider is to blame.
This is an extreme case to emphasis that I do not think that increases during a contract are entirely above board.
There should be law preventing prices being increased inside the contract period above CPI or an opt out clause (without punitive penalties) should the consumer no longer be able to afford the service.
Is this not exactly the reason why the CPA was created?