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UK Mobile Phone Companies Need to Be More Clear About 'Unlimited Plans'

UK mobile phone companies have been urged to be more clear about ‘unlimited' data plans offered to reduce bill shocks.

Phone companies in the UK offer so-called ‘unlimited' data plans that allow users to browse the web and download and stream media to their hearts' content.

These plans, however, also come with a fair usage cap which gets activated when the user hits a certain limit in their ‘unlimited' plans. Users are then charged for every MB used. Many customers are unaware about this and end up with huge data bills.

The communications ombudsman, Lewis Shand Smith, has asked mobile companies to be clear about their unlimited plans in advertisements and send alerts to users when they are about to reach their data limits to allow people to keep better track of data use, The Guardian reports (opens in new tab).

"This is an emerging problem which we think could cause real consumer detriment - we want mobile phone companies to take action before it becomes more prevalent," said Shand Smith.

"Some mobile phone packages offer 'unlimited' downloads and consumers may believe that their mobile phone bill won't go above a certain amount," he added.