Many mobile phone ads confuse and mislead

Shropshire County Council’s Trading Standards Service has recently been involved in an extensive regional study of contract mobile phone advertising. The investigation has revealed that most advertising is confusing or misleading.

In the first six months of 2007, 1,167 complaints regarding mobile phones were received across the CEnTSA region; 151, nearly 13%, of these were received by Shropshire’s Trading Standards Service.

The survey found that:

- Nearly a quarter of the mobile phone ads examined were misleading
- Nearly two-thirds of the ads failed to state the minimum term contract period and/or the cost of the monthly line rental
- Nearly a quarter failed to state the applicable network and tariff
- Informattwo-thirds of cases, officers gave an overall rating of “difficult” to describe their experience: the main reasons being that in-store brochures were not user-friendly; information was hard to locate or was contained in very small print; or information was not found at all.

Frances Darling, Enforcement Team Manager said, “The results of the survey show that it is very difficult, if not impossible, for consumers to find information relating to the cost of purchasing and using a mobile phone, without assistance from sales staff in retail outlets. Sales techniques used by the mobile phone industry are often confusing, with pricing and conditions generally complex and hard to understand. Anyone wishing to buy a mobile phone would not be able to make accurate comparisons from the information supplied in advertising and marketing material. They would have to ask staff in each retailer to clarify the information on display. It is clear from the regional investigation that current legislation and codes of practice do not go far enough to allow easy comparison of mobile phone packages.”

The Trading Standards Service strongly recommends consumers take the following steps when purchasing a mobile phone:-

- Make sure you are fully aware of the full cost of purchasing a mobile phone package. Look at the cost of the handset, the cost of the monthly line rental, and the length of minimum contract period.
- Cashback deals are often tied to packages with high priced line rental which may need to be paid up front, and there are usually strict terms and conditions attached to obtaining the cashback. Read these carefully before signing a contract.
- Most packages come with a number of free minutes and/or texts per month. If the number of free minutes or texts is exceeded within a month period, call charges will be incurred. Factor these into the total cost of purchasing the mobile phone package.
- Look closely at the service provider contract terms and conditions before purchasing, particularly those relating to the cancellation of agreement.

Councillor John Hurst-Knight, Shropshire County Council's Cabinet member for economy, added, “Mobile phones are often popular Christmas gifts, but it is clear that consumers need to be extremely careful when purchasing these products to ensure they understand exactly what they are purchasing.”

If you have a consumer complaint regarding a mobile phone, then for clear, practical, consumer advice contact Consumer Direct on 08454 040506.

Additional information

1. CEnTSA (Central England Trading Standards Authorities) is a partnership of 14 Trading Standards Authorities located in the Central England region (Birmingham, Coventry, Dudley, Hereford, Sandwell, Shropshire, Solihull, Staffordshire, Stoke, Telford & Wrekin, Walsall, Warwickshire, Wolverhampton and Worcestershire).

2. CEnTSA examined 52 mobile phone advertisements across the Central England region, for completeness and presentation of information. Trading Standards Officers not only looked at the advert itself, but also visited its associated retail outlet to assess the availability and completeness of the tariff information and terms and conditions relating to the particular mobile phone package being advertised. The aim was to establish whether consumers would be able to find out the true cost of both purchasing and using the mobile phone, without any assistance from sales staff.

6 December 2007