Menu
​Kiwi watchdog issues court action as Vodafone overcharging tops $90,000

​Kiwi watchdog issues court action as Vodafone overcharging tops $90,000

The Commerce Commission files court proceedings against Vodafone New Zealand.

The Commerce Commission has filed court proceedings against Vodafone New Zealand, alleging it breached the Fair Trading Act by making false price representations.

According to Commission findings, the proceedings relate to invoices sent to customers who signed on to the ‘Red Essentials’ mobile phone plan between January and December 2014.

Vodafone launched the Red Essentials plan at $79 (including GST) per month in August 2013 and subsequently reduced the price to $69 in January 2014 in response to market competition.

Consequently, the Commission alleges Vodafone did not accurately apply this $10 discount to customers who signed up to the Red Essentials plan from its introduction through to December 2014, causing misleading invoices to be sent to approximately 15,000 customers.

As a result, affected customers were overcharged just over $90,000 and following the Commission’s investigation Vodafone has issued refunds to approximately 98 percent of affected customers.

“Vodafone made a mistake with the discounting of the Red Essentials Plan in 2014 and we apologise to our affected customers,” a company statement read in response.

For the Vodafone customers impacted by the price change, the telco says a discount was applied to their account from the processing date, when it should have been backdated to the date the customer signed up to the plan.

According to the company, for the vast majority of these customers, the overcharged amount was less than $1 per customer while for very small group of customers, the discounted plan price was not applied.

“We recognise that a mistake was made in this instance and apologise to our customers,” adds Kelly Moore, Customer Operations Director, Vodafone.

“When the error was identified, all efforts were undertaken to contact the impacted Vodafone customers, advise them of the billing error, and process refunds. Over 98 per cent of impacted customers (all of those able to be contacted) were refunded last year.

“We also identified what lead to the error and have already taken corrective action.”

Moore says Vodafone has “fully cooperated and assisted” with the Commission throughout the investigation.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VodafoneCommerce Commission

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments