Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

New guidelines for prepaid phone card industry in New Zealand
Posted on 17-Dec-2012 11:33. | Tags Filed under: News.



The Commerce Commission has issued new guidelines for the prepaid phone card industry following customer complaints that some cards did not deliver the number of calling minutes advertised.

Prepaid phone cards allow people to pay in advance for local or international phone calls and are readily available from retail outlets including dairies and supermarkets, as well as online.

The guidelines are designed to give prepaid phone card companies a better understanding of how the Fair Trading Act applies to advertising their goods.

Commerce Commission Competition manager Stuart Wallace said the Commission’s greatest concern was unrealistic headline rates on advertising material.

“Consumers should not have to carry out a mathematical exercise to work out which card offers the best rate,” Mr Wallace said.

“If companies use fine print to disclose fees and conditions that materially affect the headline rate, they are likely to breach the Fair Trading Act,” he said.

He cited an example where a customer bought a $10 phone card and made one call to the UK, which left a credit balance of $9.38. The following month the customer was unable to make any further calls as there was no credit left on the card. According to the phone card company, the credit balance had reduced due to a daily fee of 20 cents + GST, which applied after making the first call. The customer had not seen this fee on the advertising materials.

The phone card company was convicted and fined $140,000 for this and similar advertising.

The Commission’s new guidelines cover a range of Fair Trading Act obligations, and include a checklist for advertisements. The guidelines are available from the Commerce Commission’s website and are being distributed to New Zealand based companies who market phone cards.

The Commerce Commission successfully prosecuted two phone card companies for misleading consumers about the cost of using their prepaid phone card in late 2011.


More information: http://www.comcom.govt.nz/prepaid-phone-card-...
comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

Am I going down? App for the fearful of flying.
Created by networkn, last reply by jonb on 28-Jan-2015 16:30 (33 replies)
Pages... 2 3


Bad lower back.
Created by TimA, last reply by joker97 on 28-Jan-2015 15:51 (64 replies)
Pages... 3 4 5


Police Speed Campaign - Summer 2014/2015
Created by nzkiwiman, last reply by joker97 on 28-Jan-2015 16:53 (116 replies)
Pages... 6 7 8


AdBlockers on Geekzone
Created by freitasm, last reply by dclegg on 28-Jan-2015 16:28 (51 replies)
Pages... 2 3 4


Windows 10 News - 22 Jan
Created by Regs, last reply by Brumfondl on 28-Jan-2015 15:13 (121 replies)
Pages... 7 8 9


Spark customers get Lightbox free for 12 months
Created by freitasm, last reply by ARK on 27-Jan-2015 16:35 (137 replies)
Pages... 8 9 10


How (not) to run a hotel
Created by MikeAqua, last reply by BTR on 26-Jan-2015 16:06 (68 replies)
Pages... 3 4 5


Police above the law ?
Created by heylinb4nz, last reply by MikeAqua on 26-Jan-2015 14:27 (116 replies)
Pages... 6 7 8