I've seen many things like this over the years, specifically in two industries that continue to make the news - utilities and insurance.
Whilst I totally agree that customers shouldn't be penalised for loyalty, I am amazed that more customers just don't shop around - especially given how easy it is to do. On the utilities front, with the emergence of price caps, and single one click switching, it has been made even more simple for the customer.
How soon before similar restrictions come to the insurance world?
I only know of one service that proactively reduces the price for clients. No surprise if I understood it be AWS.
On a side note, I have been with my mobile phone provider for 20 years now - and I don't think that loyalty really has given me as much as I would have expected after 20 years.
After six years, a loyal customer could typically expect to have paid a total of £1,596 - more than £500 more than someone who spends every year as a new customer with their insurer, paying £1,032 on average, it found. The charity said that in 2016 there were 9.3 million policies across the UK where customers had been loyal to their provider for six years or more and 6.9 million policies where customers switched after a year.