Friday 2 March 2012

Caveat Emptor - a salutory tale of a Telecomms shark

It is not often I feel annoyed enough to put pen to paper.

Yesterday a customer of mine (Let's call him Jim) told me he'd switched internet providers, and moved from BT to 5Gcomms.  Not normally a cause for much comment.  However, I provide some services to him and he did not check with me that the new provider was suitable.

He rang me to tell me that since the switch, the services I provide were not working on the new routers.  However, further digging into the details started to ring alarm bells.

After a cold sales call at his business premises, lasting over 5 hours, the new provider had signed Jim's company up to a three year contract, with a 36 month notice period!.  Jim took lots of assurances from the salesman, but did not read the small print on the back. By small, I mean microscopic, in light grey, which in A4 normal print runs to 12 pages!  Here is a link to the contract, which in material respects seems to be the same as what Jim signed:
http://www.5gcomms.com/assets/files/pdf/5G-tc.pdf

If I had not pointed this out, he would have waited 3 years to give notice, which would then run for a further 3 year period!  Jim has now given them 36 months notice of termination, which 5G were very unhappy about. Not a good start to a 3-year 'enforced' commercial relationship!

Not only is there no getout clause, but in Clause 2.2 they also make it clear that you are not to use any other provider of services for which they also have a comparable service. Is Jim in breach of the contract by using existing services? Could they now sue Jim for use of other VoIP service and his mobiles?  Who knows?  Will they? Who knows!

Is the contract legally enforcable?  Probably. Is it deliberately constructed to trap the unwary? I'm not a lawyer, but it looks very carefully crafted to achieve that aim. Is is fair? In my opinion, certainly not.  It raises serious ethical issues about the types of people who deliberately seem to mislead and hoodwink without giving you a chance to digest what you are signing.

Can Jim get out of the contract?  Almost certainly not. Is the service actually any good?  No idea.  Too early to tell but so far no problems now I've installed a suitable router.  Was Jim foolish to sign the contract without reading it?  Oh yes. But in the face of such high-pressure sales techniques would I have done the same? I hope not.  I hope you will think VERY carefully before signing a contract with anyone.  There are sharks out there.  I don't know how they sleep at night.  But if anyone from any telecomms company pays you a visit and insists you sign on the day without giving you a chance to read through the details of the contract carefully, politely show them the door.  Walk away. Just walk away.

CAVEAT EMPTOR.

3 comments:

  1. I've had people from Sky doing a similar thing, I have always told them that they can call back the next day after I have read their contract, they never return. I do end up with some fire-starting paper, though.

    I'm also always weary of people that knock on my door to sell me something, if I want something from you, I'll contact you. It's very simple :)

    I hope 'Jim' can find away out of the contract. if it's for the internet, does he have IPv6? if not, he might be able to use the "I can't access all of the internet, and therefor you're not sticking to your contract"? - Worth a shot.

    J

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  2. I had an RSPCA charity worker try similar.. Now I won't give anyone who any leeway at all - If they want to get me to sign something they leave the document with me and come back another day.

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  3. Rule of thumb - if a salesman is offering you an amazing deal, and won't let you take the contract and wait overnight before signing it, the deal is amazing for the salesman but not for you. If they'll happily let you sleep on it, the deal's worth considering.

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