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:

Good riddance to Obama and his drones. Pakistani villagers will be saying the same.
Created by amiga500, last reply by DarthKermit on 24-Jan-2017 14:01 (126 replies)
Pages... 7 8 9


Who's Liable for The Excess?
Created by networkn, last reply by mdooher on 23-Jan-2017 19:33 (27 replies)
Pages... 2


The President Of The USA: Donald Trump
Created by TimA, last reply by tdgeek on 25-Jan-2017 14:28 (2080 replies)
Pages... 137 138 139


2Degress are introducing a credit card fee
Created by reven, last reply by sbiddle on 25-Jan-2017 11:25 (70 replies)
Pages... 3 4 5


Car data logging.
Created by TimA, last reply by RUKI on 24-Jan-2017 15:11 (28 replies)
Pages... 2


Anker Battery Case through Youshop - Prohibited Item?
Created by stocksp, last reply by richms on 25-Jan-2017 13:09 (27 replies)
Pages... 2


Why aren't "Netflix Originals" available in all regions?
Created by Paul1977, last reply by MileHighKiwi on 25-Jan-2017 14:25 (12 replies)

Any Good SEO providers / company ?
Created by Sulco, last reply by Sulco on 25-Jan-2017 13:03 (12 replies)