George Howarth – 2015 Parliamentary Question to the Department for Culture, Media and Sport

The below Parliamentary question was asked by George Howarth on 2015-09-17.

To ask the Secretary of State for Culture, Media and Sport, what assessment his Department has made of the effect on vulnerable consumers of the switching regime in the mobile sector.

Mr Edward Vaizey

The Government is committed to working with Ofcom to support quick and easy switching in communications markets. In its current consultation on mobile switching, Ofcom sets out considerations of how current switching processes may lead to consumer harm. Problems that may occur include consumer difficulty with switching processes, unnecessary costs, navigating different processes, breaks in continuity of service, lack of awareness of the implications of and any liabilities arising from switching, and erroneous transfers and ‘slamming’ (where consumers are switched without their consent). Ofcom’s evidence suggests that, although existing mobile switching processes perform relatively well against those measures, they are likely to generate a degree of consumer harm.

For those who have not switched, the perception of a difficult process can inhibit their engagement with the market and any decision to switch, which is likely to mean they are paying more. BIS research indicates that consumers who may be vulnerable by virtue of personal circumstances – for example, those who are elderly, not working and/or lack ‘self-efficacy’, confidence or trust – tend to be fairly disengaged from markets and the purchase process. Those consumers are much less likely than other groups to gather information, check whether they are on the best deal or switch supplier.

Ofcom is currently consulting on options to improve mobile switching, with the aim of simplifying and automating the process for all consumers.