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What does ‘unlimited’ mean in my contract?

A number of telephone and broadband packages are described as ‘unlimited’.  In this context, the word ‘unlimited’ would normally be taken to mean that a consumer, having agreed to pay a set price, can make as many calls or spend as much time online as h/she wishes.  However, some service contracts qualify the meaning of ‘unlimited’ by stating that it is subject to an ‘acceptable’ or ‘fair’ level of use by the consumer.  This is sometimes referred to as a “fair usage policy”.

Most service providers operate a fair usage policy, which will be outlined in the terms and conditions of the service.

We advise you that any contract which sets usage thresholds, or describes what constitutes ‘fair’ or ‘acceptable’ use, should be clear and unambiguous, particularly where the service is described as being ‘unlimited’.  Usage thresholds or limits should be clearly set out, as should the manner in which they are updated or amended.

Service providers should have a clear and transparent policy for dealing with customer usage above any set thresholds.  The policy should set out the rules for contract termination, including penalties, the charges that will apply for any use above the threshold/limit, and the policy regarding migration of the customer to other packages, if applicable.

We also advise you to carefully read the terms and conditions of your contracts and to be aware of the particular limits or thresholds that apply before making any purchases.

Complaints about the advertisement of “unlimited” downloads while operating a fair usage policy should be raised with the Advertising Standards Authority for Ireland (ASAI).

Complaints about contractual terms and conditions setting out a fair usage policy without specific usage limits can be raised with ComReg.

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