Seán Canney TD, Minister of State for International & Road Transport, Logistics, Rail and Ports and Leader in Cabinet of the Independent Ministers, has welcomed Government approval to draft new legislation giving consumers a statutory right to exit telecom contracts without penalty when prices rise during the contract term.
The measure targets the widespread use of in-contract price increase (ICPI) clauses in broadband and mobile contracts, which currently allow providers to raise prices annually without offering an exit option.
Minister Canney said the new law will restore fairness and transparency: “Consumers must know where they stand when they sign a contract. Locking people into long-term telecom contracts while prices rise is not acceptable. This legislation ensures that any in-contract price increase automatically gives the customer the right to switch without penalty.”
Under the current regulatory framework, ICPI increases are not treated as contract changes, meaning end-users have no exit rights. The new legislation will close this loophole by ensuring that any price increase applied through an ICPI clause triggers a statutory exit window.
“This is a proportionate and necessary step to protect consumers,” Minister Canney said. “It brings clarity for households while preserving providers’ ability to invest in networks and recover legitimate costs.”
Ireland is expected to be among the first EU countries to introduce such statutory protections. The measure will be implemented through amendments to the Communications Regulation and Digital Hub Development Agency (Amendment) Act 2023, with any further adjustments to consumer law as required.
The new right of exit will:
- apply to all electronic communications consumers;
- require providers to give at least 30 days’ notice before a price increase takes effect; and
- allow customers to leave during that notice period without penalties.
- not impact the providers’ ability to offer discounts, including introductory offers
The Minister said the Department will continue engagement with ComReg, the Competition and Consumer Protection Commission and industry as drafting progresses.
