Vodafone iPhone Plans - Early Termination Charge excludes GST?

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simon14

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#248553 19-Aug-2009 10:39

ArranH:
savag3:
simon14: The early termination fees have ALWAYS been exclusive of GST.

The only difference is that now they tell you that on the website.

They don't need to give you a months notice as nothing has changed.

Is it a bit missleading? Yes. Is it illegal? No...

Actually it may be illegal. Depends on what the contract that was signed says in regards to changes to termination fees. A price must include GST unless it is explicity stated that it does not.

Have to agree, if they have made a change to the terms of the contract there must be actual notification and acceptance by the other side, otherwise the terms of the original contract will hold. If the original contract said 300 with no mention of GST then its inclusive. The fact that previous termination fees were exclusive wouldn't matter as it would be a stretch to say it was an implied term of the contract even without considering that it is far from being public knowledge.

OK, i don't know how much more clearer i need to be here....

There was never any change made to the signed contract between Vodafone and the customer. The signed contract ALWAYS stated the fee was GST exclusive.

The only thing that has changed is that the website also states this now too...

There has bene no change to the contract!!!!

I've said this three times now but meh....

Buttonmash

361 posts

Ultimate Geek

#248555 19-Aug-2009 10:43

I guess it depends how their website is classified. You'd be done if you put a sign out front saying $300 inc GST disconnection fee and having the contract say otherwise in the fine print once someone came into the store.

simon14

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#248559 19-Aug-2009 10:48

Buttonmash: I guess it depends how their website is classified. You'd be done if you put a sign out front saying $300 inc GST disconnection fee and having the contract say otherwise in the fine print once someone came into the store.

Only difference is the website didn't say GST inclusive.

ArranH

161 posts

Master Geek

#248562 19-Aug-2009 10:52

simon14:
Buttonmash: I guess it depends how their website is classified. You'd be done if you put a sign out front saying $300 inc GST disconnection fee and having the contract say otherwise in the fine print once someone came into the store.

Only difference is the website didn't say GST inclusive.

And if it doesn't specifically say GST excluded then it should be presumed to include GST. Even if it said 'GST may apply' it should still be considered as being inclusive, it must explicitly state that it is excluded.

Buttonmash

361 posts

Ultimate Geek

#248566 19-Aug-2009 11:05

Actually. The early termination fee on their website never used to say:

The termination prices shown below are exclusive of G.S.T.

Like it does now. And down the bottom it has always said:

All prices above include G.S.T. unless otherwise stated.

simon14

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#248567 19-Aug-2009 11:06

ArranH:
simon14:
Buttonmash: I guess it depends how their website is classified. You'd be done if you put a sign out front saying $300 inc GST disconnection fee and having the contract say otherwise in the fine print once someone came into the store.

Only difference is the website didn't say GST inclusive.

And if it doesn't specifically say GST excluded then it should be presumed to include GST. Even if it said 'GST may apply' it should still be considered as being inclusive, it must explicitly state that it is excluded.

OK, but that's still nothing to do with a change in the contract terms.

Buttonmash

361 posts

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#248568 19-Aug-2009 11:16

No. But as I said above you cannot advertise one thing, and change it in the small print.

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simon14

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#248574 19-Aug-2009 11:31

I believe the legal guys refer to it as "an invitation to treat" and it is not legally binding.

For example, if a shop puts the wrong price outside their store for a t shirt, they don't legally have to sell it at that price. Same goes if the wrong price tag was pasted on an item, the shop doesn't have to sell it at that price. No legal obligation.

Buttonmash

361 posts

Ultimate Geek

#248576 19-Aug-2009 11:36

Pretty sure you're incorrect here.

The wrong price on an item instore, sure, they don't have to honour it. But if they were to advertise one price externally to lure you into the store where the price changed they have to honour the price advertised.

In this case you could say you were looking at their advertised iPhone plans and made a decision to purchase based on the cost they were advertising. Hell I certainly did when doing the sums.

*edit*

Regardless of how the legality works out. They lose major points in my book for not honouring this to their customers who signed up when they were selling it GST Inclusive.

bcourtney

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#248580 19-Aug-2009 11:46

LOL - this thread is getting a wee bit out of hand.

"you could say you were looking at their advertised iPhone plans and made a decision to purchase based on the cost they were advertising"

Why would anyone be shopping for a plan based on the costs of cancelling that plan? OK, thinking about it, perhaps there are some out there that do so - bizzare however.

At the end of the day, if you haven't read the contract fully and signed your life away regardless then you're the one at fault. If you weren't happy with the "this does include GST, this doesn't include GST" clause then it was up to you to point it out PRIOR to signing and get them to clarify. Based on this information then you would be able to make an informed decision as to whether or not to sign the contract.

Still, some people DO like an argument don't they?

Buttonmash

361 posts

Ultimate Geek

#248590 19-Aug-2009 11:54

I just don't like being mislead. And who would sign a contract without taking into account the cost of cancelling early?

bcourtney

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#248597 19-Aug-2009 12:00

Buttonmash: I just don't like being mislead. And who would sign a contract without taking into account the cost of cancelling early?

Yeah sure, but it's only the GST portion. I always work to the guideline that if something doesn't explicitly say that GST is included then it isn't. That way there are no ugly surprises (although this is probably down to being a business owner where I'm dealing in GST exclusive numbers all day)

And in the scheme of things, I'm cancelling a contract (I'm feeling lucky they have allowed me to do this) and I'm paying perhaps $337.50 instead of $300 (or whatever the fee may be). Not really a major issue I wouldn't have thought.

If you are the type of person that is a stickler for the TINY details then it would be surprising if you didn't have all of these little details nutted out prior to signing a contract.

stagnant16

206 posts

Master Geek

#248612 19-Aug-2009 12:28

And in the scheme of things, I'm cancelling a contract (I'm feeling lucky they have allowed me to do this) and I'm paying perhaps $337.50 instead of $300 (or whatever the fee may be). Not really a major issue I wouldn't have thought.

If you are the type of person that is a stickler for the TINY details then it would be surprising if you didn't have all of these little details nutted out prior to signing a contract.

End of the day it's devious legally correct or not - They also changed the Early Resign to Excluding GST and charged me $150 + gst, upon arguing they changed it.

Funnily enough the CSR told me it was $150, she neglected to say that was excluding GST so they didn't have a leg to stand on!!

Oh well - I spose it all comes down to "S**t Happens"

ArranH

161 posts

Master Geek

#248615 19-Aug-2009 12:34

bcourtney:

Yeah sure, but it's only the GST portion. I always work to the guideline that if something doesn't explicitly say that GST is included then it isn't.

I wonder how many times you've paid GST on something when legally you wouldn't have had to. If it doesn't say then legally it is included. It doesn't matter if you are a consumer or a business (yes a business can be a consumer but lets not get pedantic). The law states the requirement clearly.

As to the invitation to treat that is completely correct, a price tag is purely asking you to make an offer, therefore no shop can be held to a price that was mistakenly advertised. However deliberately stating an incorrect price to get people in the door is called a bait and switch, very illegal.

But back to point, if they prominently showed that the cancellation fee was inclusive of GST, or didn't mention that it excluded then it should be considered as inclusive. Any changes to that contract must be notified to you and you must consent to them. Merely continuing to use your phone should not be considered consent as you already had a contract to use it. Plus you should receive consideration for the change (something in return). If you don't then tell them where to put their new contract terms. Big companies (not pointing any fingers here) will push past the boundaries of the law knowing that most people have no idea what the law is (as shown with the GST thing above).

Don't let them. Its the only way they'll stop. Or write to FairGo :)

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