Unethical contracts – what to look out for

When businesses invest in essential business hardware such as printers/copiers or IP phones, the technology is often reliable. The real risk lies in the contracts behind them. Unfortunately, on occasions some companies discover too late that they have signed agreements filled with hidden costs, confusing terms, and unfair exit clauses.

UK consumer law gives strong protection to individuals, but those protections don’t usually extend to SMEs.

Here is an example …

Small businesses tell of crippling costs of telecoms services – BBC News

Unethical practices typically appear in these places ⬇️

  1. “All inclusive contracts” can be set to five years, but only three years of service are actually included resulting in large unexpected bills to cover service in years 4 and 5.
  2. Hidden charges in the small print that become payable after year one, including: Consumables delivery costs, parts warranties, admin fees, compulsory “additional support” charges.
  3. Extra long term agreements – up to 72 months.
  4. “Evergreen” auto-renewals or “free upgrade options” that roll you into another long term contract unless you give notice in a very narrow time window.
  5. Promotional discounts that expire mid-term resulting in increased costs for the remainder of the contract.

Red flags you can spot before you sign 🚩

  • Bundled finance: Handsets supplied via third-party leasing. You think you’re buying service; you’ve actually signed a separate equipment finance agreement with harsher remedies.
  • Cancellation notice : 90 – 180 days’ notice, via recorded post to a specific address, during a short window -miss it and you renew.
  • “Free install” that isn’t: Waived setup recouped through higher monthly fees and punitive exit Tc and Cs.
  • The sales person says “cancel any time”, the Ts&Cs say 60-month term + 6-month notice.
  • “Free phones” but there is a separate finance or lease agreement in a different company’s name.
  • Quotes omit call charges (“you won’t exceed your bundle”) and the contract sets high out-of-bundle rates.

At Allied Office Machines, we are committed to keeping our contracts clear, simple, and transparent.

If you have any questions, feel free to get in touch with us on 01794 830326 or email s.drayson@aomltd.co.uk – we are here to help.

The Rainbow Centre selects Allied Office Machines as their office technology supplier

Martyn Pegram from Allied and the children from The Rainbow CentreBased in Fareham, The Rainbow Centre is a charity supporting children and adults with neurological conditions such as cerebral palsy, Parkinson’s, MS and stroke and their families.

The Rainbow Centre has awarded their copier contract to Allied Office Machines.

Inigo Churchill, Operations Director at The Rainbow Centre explained: “We were signed up to a long term contract which was expensive and difficult to terminate. Our main requirements were to maintain the same level of printing and scanning capabilities for less money and have a transparent and flexible contract. We went out to the market and selected Allied Office Machines. Dealing with them was very simple and easy. We liked the fact they were a small local company who provide a premium service.”

Steve Drayson, MD at Allied Office Machines added: “Allied Office Machines are an ethical family-run business where we pride ourselves on providing the best advice and solutions to all our customers. Our initial recommendation after reviewing the exiting contract was to  leave it to run a little longer, as there was a significant cost associated with terminating it. However, we are now delighted we can provide The Rainbow Centre the technology support they need so they can concentrate on helping their clients. Our consultant Martyn has even signed up to run the London marathon to raise funds for the Centre.”

Photo – Martyn Pegram from Allied Office Machines and the children from The Rainbow Centre