Menu
Commerce Commission files Fair Trading proceedings against Spark

Commerce Commission files Fair Trading proceedings against Spark

Operational and billing issues Spark describes as "historical" are at the centre of proceedings filed today

Spark is facing Fair Trading Act charges,

Spark is facing Fair Trading Act charges,

The Commerce Commission intends to file court proceedings today against Spark under the Fair Trading Act.

According to the watchdog, the action is in relation to three separate historical operational and billing issues.

Specifically, these are: an equipment fault in 2015 that affected data billing for a small percentage of customers; incorrect implementation of a "welcome credit" when joining Spark for some fibre broadband customers during 2016; and a billing implementation issue relating to a 30-day notice period when customers left Spark.

Spark told shareholders these were all system-based errors caused by genuine mistakes with no malicious intent on the part of the telecommunications giant.

"In respect of all of these issues, Spark has already applied credits to the accounts of all impacted customers and has made extensive efforts to return all amounts owed to former customers," a Spark statement read.

"While Spark has already refunded many of these former customers over the past 12 months, it has been seeking to reach more of them as part of its 'Make Sure You Get What’s Yours' consumer campaign launched in May 2018.

"Through this campaign, Spark has so far returned over $1.1 million to customers in credits owing, relating to a wide range of circumstances, not just the 30-day billing issue."

Spark also made donations in 2017 to various charities totalling approximately $268,000, in recognition of the interest it was likely to earn on unclaimed credit balances arising from the 30-day billing issue.

Spark said it will review the Commission’s proceedings and has yet to determine its position.

Although the Commerce Commission has outlined the maximum possible penalties available under law for each of the charges, Spark says it has not yet advised the penalties it will seek.

"The decision as to actual penalties will ultimately be one for the court, however these proceedings are not expected to have a significant effect on the financial position or profitability of Spark," it said.

There is, therefore, no change to Spark’s existing 2018 guidance provided in May.


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 TelecommunicationsCommerce Commissionfair trading actspark

Featured

Slideshows

Reseller News launches alumnae breakfast for Women in ICT Awards

Reseller News launches alumnae breakfast for Women in ICT Awards

Reseller News hosted the first alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers.

Reseller News launches alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Show Comments