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New undercover research carried out by Which? has revealed that the vast majority of staff in mobile phone shops gave incorrect information about potential price rises on fixed phone contracts at the point of sale. In the past year, four out of the five main phone operators have taken advantage of a hidden clause that allows them to increase prices on contracts that appear to be fixed, a practice potentially netting the industry up to £90m in a year. Surprisingly, 82% of shop assistants surveyed maintained that the price was fixed even when asked if it would stay the same throughout the length of the contract. The research also found that 70% of people on fixed contracts did not know that mobile phone companies could increase prices during the length of their contract. Which? recently launched the Fixed Means Fixed campaign, calling on phone companies to ensure that the price, and all aspects of fixed deals, remain the same for the full length of mobile phone contracts. The campaign is calling on operators to advertise upfront the possibility of price rises and, if prices do increase, to allow people to switch contracts without penalty. Which? executive director Richard Lloyd said: “It's totally unacceptable that people aren’t being told the full story about potential price rises when signing up. Even when we asked directly about price increases, the vast majority of staff denied this could happen. “There should be no nasty surprises after signing a mobile contract. People must be confident that fixed really does mean fixed.” Which? has also complained to the regulator Ofcom. Other Business Money News
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