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Ms Concha said: “While other providers use the consumer price index (CPI) to calculate inflation-linked mid-contract price rises, Virgin Media is the only major broadband firm which will use the RPI from next spring.
RPI is currently significantly higher than CPI. It lost its status as a national statistic in 2013 and has been heavily criticised as a measure of inflation.”
Which?’s complaint to Ofcom also highlighted a clause in Virgin Media’s terms and conditions which states that it can “change our charges at any time”, arguing that this could amount to an unfair contract term and be in breach of the Consumer Rights Act.
Virgin Media has rejected the claim, saying the term did not relate to monthly subscription charges but to other fees such as out-of-allowance and admin charges.
A spokesman said: “We have always been open and transparent about any price increases. While we know that price changes are never welcome, against a backdrop of rising costs, increased usage and continued investment we have already openly set out to customers that we are introducing inflation-linked price changes from April next year, which are widely used and give customers greater certainty about what to expect from their bills. Customers were given the right to cancel their contract within 30 days of receiving this notification.”
The company added that its terms and conditions were clear and that inflation-linked price rises applied only to a customer’s monthly subscription charges.
“We have no plans to increase monthly bills multiple times within the same year. If separate out-of-bundle charges are increased at any point, this would be clearly outlined and customers would receive a right to cancel.
“Our terms and conditions have been drafted in line with standard industry practice, consumer law and Ofcom guidelines.”
Ofcom said it would respond to the issues Which? had raised. The watchdog is already investigating Virgin Media following complaints from customers that the company had made it difficult for them to cancel their services.
Ofcom said some customers were struggling to get through to an agent on the phone, while other calls ended mid-way through or were put on hold for long periods.
A spokesman said: “We already have an enforcement programme open into whether telecoms firms have previously been complying with our rules, which state that mid-contract price rises must be set out clearly before customers sign up.
“We are also reviewing whether inflation-linked, mid-contract price rises give customers sufficient certainty and clarity about what they can expect to pay. We will report on both of these later this year.”
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