Sorry if this question is on another thread, I searched but couldn't find it.

So, is it legal for companies to state that their 0845 numer is Local Rate on correspondence, ads etc? I am of the understanding that Local Rate no longer exists.

Also, is it not unfair on other telecoms providers for these companies to state the cost per minute with BT as a sweetener to call them?

In addition, does it not breach Unfair Competition regulations if the Government state the BT call costs for their 0845 numbers?

Most people agree we are simply subsidising the telecom equipment with these numbers but it seems with all the negative publicity, companies are reverting back to the 'Local Rate' old chestnut in the belief we will forget that they are basically mugging us off.

floella2 wrote on Apr 15^th, 2010 at 7:47pm:

Sorry if this question is on another thread, I searched but couldn't find it. So, is it legal for companies to state that their 0845 numer is Local Rate on correspondence, ads etc? I am of the understanding that Local Rate no longer exists. Also, is it not unfair on other telecoms providers for these companies to state the cost per minute with BT as a sweetener to call them? In addition, does it not breach Unfair Competition regulations if the Government state the BT call costs for their 0845 numbers? Most people agree we are simply subsidising the telecom equipment with these numbers but it seems with all the negative publicity, companies are reverting back to the 'Local Rate' old chestnut in the belief we will forget that they are basically mugging us off.

It can be an offence under the Consumer Protection Act 1987(partIII) Misleading Price Indications, but the only people who can actually take it to the full extent are Trading Standards, and they are not interested!

Adverts containing the description should be complained to the ASA;- http://www.asa.org.uk/Complaints-and-ASA-action.aspx

From 2006;-
http://www.asa.org.uk/asa/adjudications/non_broadcast/Adjudication+Details.htm?adjudication_id=40724

From 2007;- http://www.asa.org.uk/asa/adjudications/Public/TF_ADJ_43684.htm  


Leaflet from East Sussex TS Jul 2009, (see under Law and penalties);- http://www.eastsussex.gov.uk/business/tradingstandards/detail.aspx?ref=180805&date=01/03/2007%2000:00:00


Another from East Sussex TS;
http://www.eastsussex.gov.uk/NR/rdonlyres/735C4641-4E0A-48DA-BA19-8A5007CE0AB6/0/BSN0800numbers.pdf



From 2003;-  http://www.ofcom.org.uk/consult/condocs/0845/

From 2005;-  http://www.timesonline.co.uk/printFriendly/0,,1-529-1631727,00.html
Ed Knight of Ofcom said: “It is no longer accurate to describe 0870 numbers as national rate. And discounted-call packages mean consumers contacting organisations close to their homes would often be better off calling local numbers rather than 0845 ones.”



.
Hereford TS;-
http://www.herefordshire.gov.uk/business/trading_standards/detail.aspx?id=180805&classification=Eng;Busi;Adv;FT

"Law and penalties

Under the Consumer Protection from Unfair Trading Regulations 2008, it is an offence to give misleading price indications to consumers and to omit details about prices if they also mislead. A £5,000 fine imposed at the magistrate's court or an unlimited fine and/or a sentence of up to two years in prison can be imposed at the crown court.

These regulations also make it an offence to use any misleading action or omission where the consumer may decide to use the services as a result of the action or omission. The regulations also provide for certain "banned practices" which include aggressive selling techniques. Liability can extend to the business which provided the number, if they gave incorrect pricing or other misleading information to the advertiser.

In addition, where special services have been marketed to businesses in a misleading way, the business customer may be entitled to cancel the contract and to claim compensation (which could include the cost of re-printing business stationery). This may also be an offence under the Business Protection from Misleading Marketing Regulations 2008. In addition a trading standards service can seek an injunction to prevent the mischief. "

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~ Edited by Dave: Hyperlink amended

There is also this from Leicester TS, ( http://www.ofcom.org.uk/consult/condocs/oftel_0845/responses/leicester_cc.pdf)

The following is from the above web page:-

1.3. In 2001–2002, we carried out some research and investigation in response to a consumer complaint. As a result, we reached the conclusion that any price indication given to consumers, which suggested that an 0845 call would be priced in line with a local call or that an 0870 call would be priced in line with a
national call, was misleading within the meaning of Part III of the Consumer Protection Act 1987. Any
person giving such price indications, or giving advice that such price indications may be used, is in our
view guilty of a criminal offence under that legislation. Such persons could include NTS Service
Providers, Terminating Operators and OFTEL themselves.

Thank you! I will be sharing this information with those that continue this misdemeanor :)