New code of practice for mobile phone marketing

A new industry code of practice backed by industry watchdog Ofcom has been introduced to stop mobile phone operators from using misleading sales and marketing practices.

A significant increase in complaints of mis-selling from consumers prompted talks between mobile phone operators and Ofcom.

These mis-selling practices consist of misleading cashback promotion offers and mobile phone retailers acting, or claiming to act, on behalf of mobile phone operators.

The code of practice includes minimum business standards which set out prohibited sales and marketing practices in a drive to stamp out such misleading tactics.

"Competition in the mobile market has led to lower prices and a wide variety of valuable and exciting new services," said Ed Richards, Ofcom chief executive.

"However, consumers must trust those that sell to them. We expect this new voluntary code of practice to stamp out mis-selling in mobile; if it does not, we will not hesitate to step in to protect consumers."