Friday, August 12, 2011

Vodafone fined $402,400 for misleading customers



While not as bad as Telecom/n (which is the pits), the way Vodafone conducts itself is no cause for joy either--an Auckland court has fined the multi-national $402,375 for misleading customers with one of its internet deals.

The telecommunications giant earlier this year pleaded guilty to five charges of breaching the Fair Trading Act over 14 months between 2007 and 2008 in a prosecution brought by the Commerce Commission.

The company claimed technical problems caused the incorrect pricing.

The commission said Vodafone's advertising had misled customers about the cost of using its Vodafone Live mobile internet service, leading people to believe it was free.

Vodafone then billed them for using the service.

The Commerce Commission competition manager Stuart Wallace said customers were shocked when they received bills of up to $1300 and Vodafone then made things worse by being uncooperative (which is typical of Vodafone) giving customers "the brush-off" and turning down requests for refunds.

As well as fining the telecommunications giant, the judge at the Auckland District Court on Friday ordered the company to pay court costs.

Vodafone released a statement today, saying technical problems led to incorrect charging and it would never deliberately mislead customers. Yeah, right.

The company said it had refunded all those affected and has since put measures in place to make sure customers are not confused by its charges.

Vodafone still faces a series of other charges relating to other allegations that it breached the Fair Trading Act by misleading customers in other promotions.

It's good that the Commerce Commission actively polices this sort of thing to--in the words of the first leader of the Australian Democrats--"keep the bastards honest."

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