Menu
​Vodafone slapped with $165K fine following dodgy pricing plans

​Vodafone slapped with $165K fine following dodgy pricing plans

Vodafone New Zealand has been fined $165,000 in the Auckland District Court after pleading guilty to making false price representations in breach of the Fair Trading Act.

Vodafone New Zealand has been fined $165,000 in the Auckland District Court after pleading guilty to making false price representations in breach of the Fair Trading Act.

The Commerce Commission filed charges against Vodafone in May this year related 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.

However, Vodafone's billing system 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.

Affected customers were collectively overcharged approximately $92,000, though the majority of customers were overcharged by less than $1 each.

Commissioner Anna Rawlings said customers had since been refunded the amounts they were overcharged.

“It is vital that businesses invest in making sure they have strong compliance processes that can support these types of promotional offers, particularly when selling products to a significant customer base,” Rawlings said.

“Consumers rely on companies to invoice and debit them accurately, as many do not check the finer details.

“Overcharging a large number of customers a small amount can result in firms receiving large sums of money they are not entitled to, so they need to be vigilant to avoid misleading consumers and breaching the Act.”

Rawlings said this is Vodafone’s fourth sentencing under the Fair Trading Act in the past five years.

In August 2011 Vodafone was fined over $400,000 in relation to misleading representations about its Vodafone Live product while in November 2011 the telco was fined $82,000 for misleading mobile customers over its $1 a day data charges.

Furthermore, in September 2012 Vodafone was fined $960,000 in relation to advertising campaigns run from October 2006 - February 2009 for various broadband and mobile phone promotions including Broadband everywhere, Supa Prepay Connection Pack and Largest 3G Network.

Separately, in January 2014 Vodafone paid out over $260,000 to customers in a settlement reached with the Commission concerning the company’s promotion of the Broadband Lite service.


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 Vodafone

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments