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Price change mid contract

  • 24-03-2009 6:34pm
    #1
    Random
    Closed Accounts Posts: 19,080 ✭✭✭✭


    Right, so when the new VAT rate came out a lot of prices went up. If you were paying 121EUR you're not paying 121.50EUR for example.

    If you're in a 12 month contract you've agreed to the 121EUR per month price.

    What legally allows them to change the price to 121.50EUR while keeping you in contract?

    Thanks


Comments

  • #2
    MysticalSoul
    Registered Users, Registered Users 2 Posts: 1,266 ✭✭✭MysticalSoul


    The price you agreed is really the net price AFAIK, so if the price goes up due to VAT, that is outside of the service providers (am presuming it is a service) control, so perfectly legal. I have noticed my broadband provider have absorbed the cost themselves, and am out of contract now, as in, am now on a month by month rollover contract.


  • #3
    Random
    Closed Accounts Posts: 19,080 ✭✭✭✭Random


    I'm speaking in relation to service providers yes. Broadband, mobile phone, that kinda thing.


  • #4
    MysticalSoul
    Registered Users, Registered Users 2 Posts: 1,266 ✭✭✭MysticalSoul


    If, they up the price to accommodate the price, you will have to pay, as why should they be out of pocket due to the government increasing the VAT - I have noticed the difference on my mobile since the VAT came in. The VAT has to do with the government, and has nothing to do with the service provider, so if it results in an increase, you are obliged to pay that. The agreed price whilst in contract, is really the net price (price before VAT is added on), even if they do advertise it as all in.


  • #5
    mayordenis
    Moderators, Education Moderators Posts: 9,654 Mod ✭✭✭✭mayordenis


    take the government to court.


  • #6
    Random
    Closed Accounts Posts: 19,080 ✭✭✭✭Random


    Is it just accepted that the net price is the agreed price or is it written somewhere?


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  • #7
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,375 CMod ✭✭✭✭Nody


    Random wrote: »
    Is it just accepted that the net price is the agreed price or is it written somewhere?
    The invoice you get should specify exactly how much you are paying. The amount you pay the company is exactly the same as before, the VAT is only collected on behalf of the government.


  • #8
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    Random wrote: »
    What legally allows them to change the price to 121.50EUR while keeping you in contract?

    The service is still costing the same, only the VAT has changed, so legally they haven't changed the price. If the VAT went down, you'd end up paying less, even though you signed up to pay 121.

    If you look at your contract, there should be a clause stating that the price agreed is ex VAT, and that VAT changes are accepted, or something like that.


  • #9
    Random
    Closed Accounts Posts: 19,080 ✭✭✭✭Random


    If you look at your contract, there should be a clause stating that the price agreed is ex VAT, and that VAT changes are accepted, or something like that.

    This is pretty standard in service contracts then is it? I must look through the small print again.


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