SKY has been found to have breached Ofcom rules by not sending customers notifications they were approaching the end of their contract.
Telecoms regulator Ofcom has investigated whether Sky had broken rules around telling its pay-TV customers they were coming to the end of their deal.
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It is feared that many customers are being stung by a so-called “loyalty penalty” and are overpaying on their bill.
Ernest Doku, telecoms expert at Uswitch, said: “Households have plenty on their minds right now, and with millions of us getting pay-TV services from Sky – either alone or as part of a bundle – it’s vital providers give clear notice to consumers before their contract is due to expire.”
Rules were tightened up in 2020, and providers must now alert customers when they are coming to the end of their deal period either by text, letter or email.
After a contract period, customers typically are moved on to a standard deal, which is usually more expensive.
It was hoped that the rules would encourage more customers to shop around for a better deal and save money.
Ofcom found that Sky had contravened these rules.
It is feared that many customers may not realise their deal period has ended and could be overpaying as a result.
Before the change, Uswitch had estimated that as many as 8.8 million people across the UK were paying too much for broadband, and millions were paying for a mobile phone handset they had already paid off.
Ernest said: “With many packages lasting 18 months or longer, it’s unrealistic to expect all consumers to know exactly when their initial term is over.
“Any suggestion that Sky customers are being kept in the dark is likely to make them consider other options. “
Ofcom started its investigation in May 2021, after finding there were “reasonable grounds to believe that Sky has contravened, and continues to contravene, [reulgations].”
Today it published its final decision and said Sky must take steps to comply with the rules – it has told the firm to provide a progress report within four months.
The Sun has approached Sky for comment.
How to find a better TV deal
With any telecomms deal – from pay-TV to broadband and mobile phone, it is important to put a note in your diary to remind you when your contract is coming to an end.
Start shopping around a few weeks before this date to find a new deal.
Comparison sites can help you do this, and it’s worth looking on cashback sites for offers too.
USwitch’s Ernest said: “It’s worth considering whether your current package suits your circumstances as you may be able to save money by trimming channels.
“Out-of-contract Sky customers who pay separately for Netflix could also save, as it is now included as standard with new contracts.
If you’re happy with your current provider, you may be able to haggle on price to save some money.
Firms value customer loyalty so if you’re reaching the end of your contract tell them you’re planning to move elsewhere.
Do your research so you know what comparable deals are available with other providers – and always remember to be polite.
Ernest said: “If you’re a Pay-TV customer and think you could be out of contract with your provider, check your paperwork or online account for confirmation, as you could be overpaying by not switching to a new deal.”
“It certainly pays to shop around – you can save a great deal of money by taking prompt action and switching to a better deal after their end-of-contract notification is issued.”
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