by Switzerland’s strong currency and the widespread influence of the administration on many prices means the country has escaped much of the recent inflation afflicting many nations. But increasingly, inflation is entering the scene. This week, Swisscom announced it plans to change its general terms and conditions to make it possible to increase the price of existing contracts, reported RTS. © Marlon Trottmann | Dreamstime.comSwisscom recently warned customers that it was changing its terms and conditions. The tweak clearing the way for Swisscom to raise its prices in line with inflation was presented at the end of an email with the heading: “we are updating our privacy policy”. The final paragraph of the email states: “Furthermore, we now reserve the right to adjust our prices at any
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Switzerland’s strong currency and the widespread influence of the administration on many prices means the country has escaped much of the recent inflation afflicting many nations. But increasingly, inflation is entering the scene. This week, Swisscom announced it plans to change its general terms and conditions to make it possible to increase the price of existing contracts, reported RTS.
Swisscom recently warned customers that it was changing its terms and conditions. The tweak clearing the way for Swisscom to raise its prices in line with inflation was presented at the end of an email with the heading: “we are updating our privacy policy”. The final paragraph of the email states: “Furthermore, we now reserve the right to adjust our prices at any time as a result of inflation (reference: Swiss Consumer Price Index). Any price adjustments will be communicated well in advance. The revised GTCs for Services (PDF) will enter into force on 1 June 2023.”
Some legal experts have questioned the legality of the surrepticious change. According to FRC, a consumer advocacy association, customers have until 31 May 2023 to reject the new terms. However, if they do Swisscom is legally allowed to end the contract.
According to Swisscom the company is itself a victim of inflation. Salaries have increased as have energy costs. A company representative said the company has no immediate plans to raise prices and the size of any increase has not been decided. If a price rise is made it will be in line with inflation.
Other operators may be considering similar price increases, according to RTS. Sunrise added a similar clause to its terms and conditions at the beginning of the year and Salt added one to new contracts in October 2022.
However, price rises of any kind are risky. Disturbing loyal customers on old contracts has the potential to backfire. Over recent years the prices of phone contracts have fallen in Switzerland. Newer deals and attractive discounts aimed at attracting new customers often fly under the radars of long term customers who automatically continue with monthly payments in excess of current market rates. A quick call to your provider at the end of any fixed term contract to suggest you might move to a cheaper deal elsewhere is typically rewarded with savings. But we often forget. An out of the blue price hike like the one envisioned by Swisscom could act as the perfect reminder to get on the phone and negotiate, or if that fails, move to a competitor.
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