By Aaron Miller-
Vodafone in New Zealand has been fined for the fourth time in five years for making false price misrepresentations to customers, in breach of the country’s Fair Trading Act.
Vodafone was fined NZ$165,000 following court action by the New Zealand competition enforcement and regulatory agency.
The Commerce Commission, took the company to court over invoices sent to customers who signed on to its “Red Essentials” mobile phone plan between January and December 2014.
Vodafone had initiated the plan at NZ$79 (including GST) per month in August 2013, but later reduced the price to NZ$69 in January 2014, in response to market competition.
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The Commerce Commission argued in court, however, that Vodafone’s billing system did not accurately apply the NZ$10 discount to customers who signed up to the Red Essentials plan from its introduction through to December 2014
This caused misleading invoices to be sent to approximately 15,000 customers.
LAUNCH
Vodafone launched the plan at NZ$79 (including GST) per month in August 2013 and subsequently reduced the price to NZ$69 in January 2014 in response to market competition.
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Vodafone was also fined more than NZ$400,000 under the Fair Trading Act in August 2011 for misleading representations on its Vodafone Live product.
It was further fined NZ$82,000 in November 2011 for misleading its mobile customers over NZ$1-a-day data charges, and fined NZ$960,000 in September 2012 for its Broadband Everywhere, Supa Prepay Connection Pack, and Largest 3G Network advertising campaigns.
The company also paid out a large settlement more than NZ$260,000 in January 2014 to customers for its Broadband Lite service promotion.
The ComCom in March published report in March by TheCom Com into the state of mobile telecommunications competition among business customers, found that the prevalent view about Vodafone NZ, was that it is “unresponsive”.
SURVEY
Also revealing, wasn’t fact that half of all Vodafone business customers surveyed admitted they were unlikely to complain about significant costs imposed on them as customers.
The reality is that not many customers have the time to complain about issues of discontentement. This is where many organisations get away with negligence and.misleading practices.
The ComCom is also looking into Vodafone NZ’s proposed merger with Sky Network Television, after the two reached an agreement in June to form an integrated telco and media group.
The regulator published a Statement of Preliminary Issues on the matter, with responses from industry accusing the two companies of trying to squeeze the competition out of the wholesale premium live sport and entertainment content market, the retail residential fixed-line broadband market, the retail mobile broadband market, and the pay TV market.
“We believe if the Commerce Commission blocked the proposed merger, Sky would be forced by commercial realities to make all of its sports content available online and on-demand — and via wholesale arrangements with lots of parties that help distribute this content to New Zealand consumers,” Spark New Zealand general manager of Regulation John Wesley-Smith said.
Dominant
Vodafone NZ is the dominant mobile provider in New Zealand, with more than 2.35 million mobile connections.
Altogether, customers were overcharged over NZ$9o,000, though the majority of customers were overcharged by less than $1 each. Commissioner Anna Rawlings, told the eye ofmedia. com that customers had since been refunded the amounts they were overcharged, adding “it is such a shame this happened, but hopefully, a repetition will be avoided.
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