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Buffer6
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Inflated prices

Inflated prices

Current legislation does not tackle circumstances where a business increases the price of goods or services unreasonably - a practice commonly referred to as profiteering or price gouging.

This is because businesses are free to set the price they wish to charge for goods or services, as long as the price is made known to consumers beforehand.

However, the Competition and Markets Authority wants to make sure that businesses do not exploit the current health emergency to take advantage of consumers, and is advising consumers to report instances of price gouging to them at this link:

https://www.coronavirus-business-complaint.service.gov.uk/ 

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spgray
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Re: Inflated prices

do they also want to know when companies don't raise prices, such as last year?
coronavirus shouldn't be a reason for not applying planned price increases, businesses need to be able to continue to trade as normally as possible if they are permitted to continue trading.

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jamesofmerton
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'coronavirus shouldn't be a reason for not applying planned price increases'

absolutely. i find it astonishing those that think that because of the virus nothing should be increased in price. yes some are struggling, but that won't make one jot of difference to the price of milk or a sub to netflix who have also just announced an increase.

virgins delayed increase of 6 months is in line with previous increases and that of its direct competitors.


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Buffer6
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The original post does not site VirginMedia.  However, if one company is allowed increases in prices at this time, then they (The Government) will have to consider the domino effect of others jumping on the bandwagon.

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spgray
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Re: Inflated prices

"allowed" to increase prices?

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nodrogd
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Re: Inflated prices


@Buffer6 wrote:

The original post does not site VirginMedia.  However, if one company is allowed increases in prices at this time, then they (The Government) will have to consider the domino effect of others jumping on the bandwagon.


Vodafone have already announced an increase.

BT announced a 4.5% increase across the board yesterday.

Its not just "one company"

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Buffer6
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Re: Inflated prices

Exactly and it only takes one company to start it all off

"allowed" to increase prices? The Government has the right to block price rises if they are going against the

public interests at large.  'Windfall taxes' later do not help the public at large.

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spgray
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your argument makes no sense.
if your competitor raises prices then it would actually be advantageous to NOT increase your own prices as it would market yourself as being cheaper than your competitors.

and the government has the "right" to block what a private company does with regards to price?

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Buffer6
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Re: Inflated prices

Inflation is an upward spiral of price increases that causes hardship to many and effects the economy which then has to be downgraded with respect to the other economies in the world.  So everybody involved in that inflation zone loses out.

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nodrogd
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Re: Inflated prices


@Buffer6 wrote:

Exactly and it only takes one company to start it all off

"allowed" to increase prices? The Government has the right to block price rises if they are going against the

public interests at large.  'Windfall taxes' later do not help the public at large.


Its unlikely the Govt will be quick to block price rises. They are all for this "everyone must have access to fast broadband no matter where you are & how much it costs" message, so at the end of the day somebody has to pay for it. If they don't, who does? Us of course.

OFCOM is only interested in clarity & telling customers what pricing policy is, not dictating it.

BT has been preparing for bigger hikes for a while now by changing the CPI clause in their contracts:

https://www.ispreview.co.uk/index.php/2020/09/sneaky-uk-broadband-isp-bt-inserts-new-3-9-price-hike-... .

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