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Four telcos get warning letters

Spark, Vodafone, MyRepublic and 2degrees have been told off by the Commerce Commission for promotional activity likely to have breached the Fair Trading Act.

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Telcos continue to rank among the most complained about traders.

The conduct criticised by the commission was:

MyRepublic

  • Promoted its 1 Gigabit per second service up to 2 months before it was actually available
  • Represented that customers on its GAMER broadband service would not experience lag or latency when they could experience lag or latency caused by third-party servers
  • Incorrect representations that consumers’ rights of cancellation under the uninvited direct sales provisions of the Fair Trading Act ceased to apply once MyRepublic had commenced the service.

2degrees

  • Made misleading representations about the price of its unlimited broadband plan, by not identifying or inadequately disclosing the additional cost of a modem and its delivery.

Spark

  • Made representations that Vodafone’s 2G network was imminently closing, in the marketing of Spark’s Skinny Mobile service.

Vodafone

  • Made misleading representations in the promotion of 12-month broadband plans bundled with “free” goods or services when, in order to receive the “free” goods or services, the consumer was required to pay additional fees or to take additional services
  • On some occasions, a monthly headline price was advertised, but that price did not include the additional fees to be paid in order to receive “free” goods or services.

Our latest telco survey found the big players, Spark and Vodafone, were doing the worst job of keeping their customers happy.

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