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

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news