Wednesday, 01 May 2019 22:10

Vodafone NZ fined $350,000 for billing customers after contracts finished Featured

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Vodafone NZ fined $350,000 for billing customers after contracts finished Image JanPietruszka FreeDigitalPhotos.net

Vodafone New Zealand has been fined NZ$350,000 for making false representations in invoices it sent to customers.

The fine was imposed on the retail telecommunications provider in the  Auckland District Court after the company pleaded guilty and was convicted in relation to 14 charges under the Fair Trading Act for conduct that occurred between January 2012 and December 2018.
 
The court was told that, despite Vodafone’s contractual terms and conditions stating it would stop charging customers either 30 days after they gave notice to terminate their contracts or on an agreed date, Vodafone sent invoices to more than 29,000 customers that included charges beyond the agreed date of termination.

And as a result, customers across three of Vodafone’s billing systems overpaid around $285,000.

“Customers have the right to expect businesses to invoice them accurately and it is vital businesses take care to ensure their billing systems and processes are doing that,” said Commerce Commission competition snd consumer general manager Antonia Horrocks.

“For a large proportion of the affected invoices in this case, Vodafone relied on staff to manually adjust them but did not take adequate steps to ensure that process was being consistently followed. As a result, tens of thousands of customers were left out of pocket.

“All businesses need to ensure that their billing systems are robust, and that they are making accurate representations when they invoice their customers,” Horrocks cautioned.

In sentencing District Court Judge E.M. Thomas described Vodafone’s representations as highly careless, saying a deterrent penalty was justified as the market needs to have faith in the conduct of its major players.

“Vodafone breached the trust that all consumers should be entitled to place in suppliers’ representations,” he said.

The action against Vodafone comes after New Zealand’s largest telco Spark was fined $675,000 last month after pleading guilty to charges relating to misrepresentations in its customer invoicing and a $100 welcome credit offer to new customers.

And in 2016 was Vodafone was fined $165,000 in the Auckland District Court after pleading guilty to making false price representations in breach of the Fair Trading Act. The charges related to invoices sent to customers who signed on to the "Red Essentials" mobile phone plan in 2014.

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Peter Dinham

Peter Dinham - retired in 2020. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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