Martin Lewis has issued a warning to Sky TV customers after it announced a round of price hikes for this year – but insists there’s a loophole for TV packages.
In January, regulator Ofcom changed the rules on phone and broadband, telling providers they would need to set out in pounds and pence how much a customer’s prices would increase during the course of the contract, at the outset.
Any supplier not doing so would have to give customers the right to cancel within 30 days instead.
And Sky has opted to stick with percentage rises instead, and this week announced a 6.2% mid-contract price rise for customers.
Sky is taking advantage of a loophole on its price rises which will allow it to increase prices as a percentage instead of pounds and pence, but gives customers the ability to cancel within 30 days of a rise instead.
But as the Express first reported on Tuesday, Sky says that the ability to cancel does not apply to its TV packages, only to broadband.
Sky told the Express that when your prices go up, you can contact Sky to cancel instantly within 30 days and switch to another provider, even if you’re mid contract. This applies to broadband prices specifically, as TV packages aren’t covered in the rules. Essential TV is also not subject to a price rise.
But if a customer bought a broadband product at the same time as a TV package, they will be able to leave their minimum term contract for both products penalty free, within 30 days of being notified of a price increase.
Martin Lewis today 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 website where more details were given.
Now, Martin Lewis’ MSE has investigated the issue.
MSE said; “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 turns out that Sky is taking advantage of a technicality around the fact that Sky Q and Sky Stream are delivered via the internet and streaming, which are not covered 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 still locked in a dispute about whether its satellite based TV is covered by Ofcom rules 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 comment.
