New rules to prevent mis-selling by mobile phone companies come into force today, reports telegraph.co.uk. Ofcom has said that the rules will stop mobile services providers engaging in “dishonest, misleading or deceptive conduct”.

The rules mean that mobile network operators have to ensure that the customer has authorisation to enter into a contract and that it’s actually what they want. They also have to ensure that cashback deals do not involve too many restrictions.

Ofcom has received many complaints about cashback offers and the mis-selling of mobile phones. After a voluntary code of practice to deal with mis-selling failed Ofcom decided to bring in new mandatory rules. If these rules are broken providers could be fined as much as 10% of the relevant turnover.

Source and further details: http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/6197180/Mobile-firms-face-new-fines-for-mis-selling.html