Automatically renewable contracts commonly known as ACRs enabled companies to automatically renew the contracts of their customers without the consent of the customer. In order to leave the contracts customers used to have to actively contact their provider to cancel the contract. If they did not get into contact with their provider then the contract would be automatically renewed. This then tied to the consumer to a new contract with the same company and the only way out of the contract was to pay for it to be cancelled.
This ruling by Ofcom will give more power to consumers as we will be in a better position to shop around for better deals. This is because instead of being forced into staying with the same provider under the same terms as the previous contract. When our contracts end we will be free to move on to a new contract that better suits us.