Martin Lewis issues warning to Sky TV customers | European Markets

Martin Lewis has issued a warning to Sky TV prospects after it introduced a spherical of price hikes for this yr – however insists there’s a loophole for TV packages.

In January, regulator Ofcom modified the principles on cellphone and broadband, telling suppliers they might need to set out in kilos and pence how a lot a buyer’s costs would increase during the course of the contract, on the outset.

Any provider not doing so must give prospects the precise to cancel within 30 days as an alternative.

And Sky has opted to stay with share rises as an alternative, and this week introduced a 6.2% mid-contract price rise for purchasers.

Sky is taking benefit of a loophole on its price rises which is able to enable it to increase costs as a share as an alternative of kilos and pence, however provides prospects the power to cancel within 30 days of a rise as an alternative.

However because the Categorical first reported on Tuesday, Sky says that the power to cancel doesn’t apply to its TV packages, solely to broadband.

Sky instructed the Categorical that when your costs go up, you may contact Sky to cancel immediately within 30 days and swap to a different supplier, even for those who’re mid contract. This is applicable to broadband costs particularly, as TV packages aren’t coated within the guidelines. Important TV can also be not subject to a price rise.

But when a buyer purchased a broadband product on the identical time as a TV bundle, they’ll have the ability to depart their minimal time period contract for each merchandise penalty free, within 30 days of being notified of a price increase.

Martin Lewis at present tweeted: “New. Got Sky TV? A 6.2% price rise is coming but a loophole means you CAN’T cancel penalty-free if it hikes your price mid-contract. Read our investigation…”

Martin then linked to his MSE web site the place more particulars got.

Now, Martin Lewis’ MSE has investigated the problem.

MSE mentioned; “Sky’s TV contracts DON’T let you cancel penalty-free if it hikes prices.

“Whether you have Sky Q, Sky Stream or Sky Glass, you CAN’T cancel due to mid-contract price rises. That’s because all of Sky TV’s current contracts have similar provisions that say:

“Your monthly price may rise during your minimum term – though not in the first 60 days and by no more than 10% or inflation each year (whichever is higher); AND

“You CAN’T cancel during the minimum term because of this. (Note: Not all Sky TV services have a minimum term – you can sign up to Sky Stream on a rolling monthly basis, for example. However, this is more expensive and is not the default option on Sky’s site.)”

It seems that Sky is taking benefit of a technicality round the truth that Sky Q and Sky Stream are delivered through the web and streaming, which aren’t coated by Ofcom.

MSE added: “Online streaming services are excluded. These “content services” give you access to shows, films and other content through the internet – think Netflix, Amazon Prime Video, Disney+ and so on. These aren’t regulated as “communications services”, so NONE of Ofcom’s rules about price rises apply.

“And here’s the kicker: as Sky Stream and Sky Glass also only work through the internet, they’re considered to be content services – so they’re simply NOT covered by the rules on price rises.

“Other pay-for TV, such as satellite TV, isn’t explicitly mentioned either way. This makes the situation more complex and has opened the door to a legal dispute between Sky and Ofcom.”

MSE added that Sky and Ofcom are nonetheless locked in a dispute about whether or not its satellite tv for pc based mostly TV is roofed by Ofcom guidelines or not.

MSE concluded: “In the meantime, the reality for customers is that Sky’s TV contracts simply don’t let you leave penalty-free due to price rises. We think this is unfair, and potentially breaches other consumer protection laws, so we’ll be passing on our findings to the Competition and Markets Authority (which should have the power to investigate as its remit is broader than Ofcom’s).”

Sky has been contacted for remark.