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Increasing complaints from consumers over mis-sold mobile contracts has caused Ofcom to come up with new rules for mobile service providers.

Ofcom had to step in to take control of the situation after the voluntary code of practices introduced by network providers in July 2004 did not succeed at preventing customers from being tricked by dishonest selling methods. The new rules brought in by Ofcom are most likely to change the market for the better. According to the fresh regulations mobile network providers would have to pay up to 10 per cent of their relevant turnover as fine for breaching the guidelines.

Ofcom claims that the consumers’ complaints have gone down from 600 a month to 200 since March 2008, when the rules were first proposed. The rules disallow any mis-selling practices by making it mandatory for providers, including the mobile broadband providers, to give customers all the essential information they might need on everything from pay as you go mobile broadband, or contract laptops and to make the cashback offers less restricted. The network operators will also be required to carry out regular inspections of retailers and sellers to make sure they are not mis- selling services.

This move comes as a welcome change for customers who have always been harassed by being talked into deals they did not need or cashback offers they could never redeem. Although, it is shameful for mobile broadband providers that Ofcom had to step in to strengthen the rules, the change is sure to leave consumers more satisfied. Ofcom should have done much earlier, what it is doing now.