Birmingham MP Roger Godsiff argued Ofcom had yet to introduce regulation to protect consumers and dealers from unsustainable cashback deals. He also lashed out at networks for denying responsibility for cashback.
Godsiff said: “Ofcom should have been more rigorous in drawing up a Code of Practice to protect consumers.”
But Newbury MP Richard Benyon defended the networks, claiming legislation would restrict industry competition.
Benyon said: “Attacks against networks over this issue are off target and should be aimed at dealers. There’s already some protection in place for customers and we have to ask how far we should hold their hands.”
Business, Enterprise and Regulatory Reform Minister Malcolm Wicks ruled the issue was a matter for Ofcom, who will unveil regulatory proposals this year.
Godsiff said afterwards: “I was disappointed a few of my colleagues took a pro-operator position, but I am not surprised the Minister decided it was a matter for Ofcom.”