Ofcom launches price-comparison services scheme

Ofcom today launched an accreditation scheme for price-comparison services that target consumers looking to buy communications products.

The UK watchdog will be accepting applications for accreditation from any group that provides an accurate and user-friendly price-comparison calculator.

The communications market is becoming increasingly complicated, with fixed and mobile telephony, digital TV and broadband services all being offered as part of various bundled services.

Consumers are often confused so Ofcom is hoping the scheme will raise awareness about existing price comparison services that can help people out.

Ofcom research has also shown that consumers are more likely to shop around if they can use approved comparison services.

Ernie Cormier, chief commercial officer of service provider NTL:Telewest, said: "Price-comparison sites are a useful research tool for consumers but ensuring their objectivity and accuracy is essential if they're to remain a trustworthy source of information, so the Ofcom accreditation scheme is a welcome move."

A spokeswoman from price-comparison and switching service uSwitch told silicon.com: "We will participate fully in the consultation process."

A BT spokesman said: "We welcome [the scheme] because something clearly needed to be done."

But he added that Ofcom needs to make sure it emphasises the need for transparency. He said price comparison companies should clearly state if they benefit from users switching supplier.

The accreditation process will take into account the accuracy of calculators and consider how comprehensive and transparent services are. It will make sure these services are accessible to everyone including those without internet access or with disabilities.

The scheme follows a review of consumer policy by Ofcom aimed at setting out the watchdog's future approach to consumer issues and concerns.