Under prepaid contracts, who must approve any price increase after signing?

• A. The regulator must approve any price increase.
• B. Prices can be increased at operator's discretion.
• C. The customer must approve any price increase; otherwise operator cannot charge more.
• D. Price increases are prohibited altogether.

Answer: (C)

In prepaid contracts, the price is fixed to protect the purchaser from unexpected costs. Any change to the contract, including a higher price for future services, must have the customer’s explicit agreement. The operator cannot unilaterally raise the price after signing; they must obtain written consent from the customer (often via an amendment to the contract). The regulator sets the rules, but does not approve each individual price increase. So the only proper path for a price increase is with the customer’s approval; otherwise the operator cannot charge more and may need to honor the original price or offer a cancellation with a refund.