New rules have been brought in by Ofcom to regulate simplify companies selling mobile phones, which could lead to them being fined up to 10% of turnover if found breaking them.

The main areas being reviewed were cashback offers, when customers buy a handset up front and then are refunded the cash over the course of the contract, and restrictive or misleading terms and conditions.

Ofcom said other examples of mis-selling complaints from consumers had included:

• Finding themselves signed up to a more expensive tariff than agreed at point of sale
• Upgrading their 12 month contract believing they were signing up to another 12 month deal, but then finding themselves entering into a new longer contract period.
• Signing up to a service after being told coverage in their area is good, but then finding that they have little or no reception.