Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

ComCom files against Vodafone on 'Red Essentials'

Wednesday 25 May 2016 05:04 PM

Commerce Commission files against Vodafone, alleges misleading 'Red Essentials' mobile plan

By Paul McBeth

May 25 (BusinessDesk) - The Commerce Commission has filed court proceedings against Vodafone New Zealand, claiming the country's biggest mobile phone operator misled customers on its 'Red Essentials' mobile plan in 2014 to the tune of $90,000.

The regulator says Vodafone didn't accurately apply a $10 discount to customers who signed up to the plan from its introduction through until December 2014, meaning misleading invoices were sent to about 15,000 customers, who were overcharged by about $90,000. Following the commission's investigation, Vodafone refunded about 98 percent of affected customers, the regulator said.

Businesses face fines of up to $200,000 per charge for breaching the Fair Trade Act and the courts can impose bigger penalties where more than one charge is laid.

In a separate statement, Vodafone said it made a mistake with that plan and apologised to affected customers. The mobile carrier said it had cooperated with the regulator throughout, but didn't address the court proceedings directly.

Customer operations director Kelly Moore said the company had identified what caused the error and fixed it.

In 2014, Vodafone paid $268,000 to customers to settle a breach of the Fair Trading Act for a broadband promotion between 2009 and 2011. Two years earlier, the company was fined $960,000 for misleading advertising of its wireless broadband coverage and a free airtime deal, and in 2011 it was fined $400,000 over promotions it ran between 2006 and 2009.

(BusinessDesk)


Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.