Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Commission settles with Vodafone over ‘Broadband Lite’

Commission settles with Vodafone over ‘Broadband Lite’ promotion

Issued 16 January 2014

Release No. 66

Vodafone NZ Limited has paid out $268,231 to customers in a settlement reached with the Commerce Commission concerning the company’s promotion of the “Broadband Lite” service.

Broadband Lite enables customers to access the internet from their mobile phones.

Between July 2009 and September 2011 Vodafone offered its Broadband Lite service free to some customers for a three month period. After the free period, the service cost $10 per month. If the customer wanted to cancel the service, they needed to notify Vodafone before the free period expired. Vodafone’s terms and conditions advised that the telco would send a text message to customers reminding them of the need to opt-out of the service if they did not wish to be charged.

During this promotion the service attracted more than 146,000 customers.

In late 2011 the Commission received complaints mainly from customers who mistakenly thought they were getting the service for only three months, or who did not feel adequately informed of the terms and conditions of the promotion, including the steps they would have to take to opt-out of the service.

The Commission investigated the complaints and decided that some customers were not adequately advised of the terms applying to the service. The investigation also revealed that almost 8,000 customers did not receive the promised ‘opt-out’ reminder text and around 3,000 customers had cancelled the service but were charged for it because the Broadband Lite add-on was not removed from their accounts.

Following enquiries from the Commission, Vodafone initiated its own investigation into the complaints and took active steps to identify and rectify the issues. Vodafone has reviewed and upgraded its Fair Trading Act compliance training programme for all staff.

“In reaching the decision to settle, we took into account the fact that Vodafone put things right as soon as it became aware of the problems. Nonetheless, the case highlights the potential problems with ’opt-out’ sales promotions,” said Commerce Commission Consumer Manager Stuart Wallace.

“Such promotions require the consumer to take an active step in order to not buy something. Customers can be locked into a deal that they don’t want and maybe did not understand. Unless the ‘opt-out’ condition is very clearly disclosed, these promotions have a high risk of being misleading and in breach of the Fair Trading Act,” said Mr Wallace.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news