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


Vodafone sentenced for historical billing errors

Vodafone was fined $350,000 in Auckland District Court today following our guilty plea in February 2019 for breaches of the Fair Trading Act. The breaches related to billing errors which occurred between 2012 and 2018, made when customers gave advance notice about terminating their services.

Vodafone CEO, Jason Paris, says, “Every customer deserves an accurate bill every month. We clearly fell well short of that in this instance, and for that I apologise. If you get it wrong, you should put your hand up, acknowledge it, and make it right.”

The billing error arose for a proportion of customers who had a new billing cycle start within their notice period of termination. In these cases, an invoice was generated for another full month, rather than pro-rated for the number of days remaining in the notice period. As a result, some customers overpaid us. On average, affected customers were over-charged by $9.70 each.

Vodafone has applied credits to the accounts of all current and former customers affected by the error and we have undertaken an extensive programme to contact and reimburse them. In cases where we’ve been unable to locate customers, we have donated the equivalent of their unclaimed credit balances to charity via the Vodafone New Zealand Foundation. Notwithstanding this donation, any customer who we have been unable to contact who has an outstanding credit will be refunded if they get in touch with us.

In making its ruling, the Court took into account the fact that Vodafone had co-operated with the Commerce Commission throughout their investigation, as well as Vodafone’s guilty plea and remediation efforts.

“I want to reassure customers Vodafone has not profited in any way from these historical billing errors, and we have subsequently invested significant time and money into improving our systems and processes to prevent a recurrence,” says Paris.

This issue resulted in 29,425 customers being overcharged a total of $285,359.37 between January 2012 and December 2018 and occurred due to a combination of unintentional system and human errors which Vodafone has resolved.

© Scoop Media

Business Headlines | Sci-Tech Headlines


1.5 Percent: Official Cash Rate Unchanged

The Official Cash Rate (OCR) remains at 1.5 percent. Given the weaker global economic outlook and the risk of ongoing subdued domestic growth, a lower OCR may be needed over time to continue to meet our objectives. More>>

IMF On NZ: Near-Term Boost, Risks Tilted To Downside

New Zealand's economic expansion has lost momentum and while the near-term outlook is expected to improve, risks are increasingly tilted to the downside, according to the International Monetary Fund. More>>


Traceability: NZ To Track Satellites, Eggs

The New Zealand Space Agency (NZSA) is continuing to build its capability as a regulator of space activity with a new pilot project which allows officials to see real-time information on the orbital position of satellites launched from New Zealand. More>>


OECD On NZ: NZ's Living Standards Framework Positive But Has Gaps

Treasury’s living standards framework reflects good practice internationally but has some data gaps, including in areas where New Zealand fares poorly, the Organisation for Economic Cooperation and Development says. More>>


RBNZ Act Review: Govt Plans Deposit Guarantee Scheme

The Coalition Government today announced moves to make New Zealand’s banking system safer for customers through a new deposit protection regime, and work to strengthen accountability for banks’ actions. More>>