Commission files proceedings against Vodafone

Commission files proceedings against Vodafone over misleading invoices

The Commerce Commission has filed court proceedings against Vodafone New Zealand Limited alleging it breached the Fair Trading Act by making false price representations.

The proceedings relate 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.

The Commission alleges Vodafone 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 overcharged just over $90,000. Following the Commission’s investigation Vodafone has issued refunds to approximately 98% of affected customers.

As this case is before the court, the Commission cannot comment any further at this time.

ENDS

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