Mobile phone outlets giving 'biased advice'

A link between mobile phone advice given in-store and ownership of high street outlets has been established following a 'mystery' shopping report.

The research - commissioned by Virgin Mobile and carried out by Taylor Nelson Sofres - demonstrated that in-store advice offered by outlets often turns out to be unsuitable or too expensive for customers' needs. For example, pre-pay packages are frequently not encouraged, due to contract deals being more profitable for service providers.

Misleading advice may be the result of a commission system used in stores, according to the report. BT Cellnet was found to have the largest share ownership across all outlets. Carphone Warehouse, DX Communications and the Link were among the 210 UK stores surveyed.

Nearly half of the "mystery shoppers" felt that information on available tariffs was incomplete. One in four shoppers were offered a deal that would cost them more than £400 a year, although in many cases a less expensive pre-pay phone deal provide better value.

Brian White, MP for Milton Keynes North East, voiced his concern and expressed the need for firmer regulation. In a statement he said: "The regulators should ensure that advisors calling themselves 'independent' must be transparent about any commission they receive. It is time Oftel stepped in to ensure that mobile phone consumers know exactly where they stand."

White tabled an Early Day Motion in the House of Commons on Monday calling for transparency in mobile phone retailing.