Telecommunications providers face charges for billing customers after contracts finished

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › Telecommunications providers face charges for billing customers after contracts finished

freitasm

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#252920 17-Jul-2019 09:38

Just received:

The Commerce Commission has laid 13 charges against retail telecommunications providers CallPlus Services Limited (trading as Slingshot), Flip Services Limited and Orcon Limited, alleging the companies made false representations in invoices they sent to their customers.

The charges were filed in the Auckland District Court under the Fair Trading Act and relate to conduct during the period 2 January 2012 to 1 March 2018.

The Commission alleges that the companies issued invoices which included charges to customers for the period after the agreed termination date for their contracts.

In doing so, the Commission alleges the companies misrepresented their rights to payments because their customers only owed payment for the services provided prior to the agreed termination date.

The case will be called in the Auckland District Court on 23 July 2019.

As this matter is before the Court, the Commission cannot comment further at this time.

Background
CallPlus Services Limited, Flip Services Limited and Orcon Limited are each subsidiaries of parent company Vocus (New Zealand) Holdings Limited.

Vocus is a major provider of mobile and broadband services to New Zealand consumers and businesses.

kharris

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#2278155 17-Jul-2019 10:01

I assume this is only when termination of services has been requested?

Most contracts end and the relationship continues off contract and is billed for.

Kirk

freitasm

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#2278167 17-Jul-2019 10:13

This the response from Mark Callander, Chief Executive New Zealand, Vocus:

“Vocus has been co-operating with the Commerce Commission during the investigation into this matter. Unfortunately, over a six year period, a very small percentage of customers leaving Vocus' residential ISPs who had given more than 30 days' notice of termination may have been billed incorrectly on their final bill. Vocus fixed this issue in early 2018. Vocus has written to all customers affected and offered refunds, and apologised for the mistake. People who think they may have been affected can email refunds@email.vocusgroup.co.nz”

chevrolux

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#2278179 17-Jul-2019 10:35

Really surprised Vocus are being targeted for this.

Vodafone are by far the worst offenders in my experience with business customers.

Spark are the best, and really issues only arise when customers have bundled products.

tyronne

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#2278219 17-Jul-2019 11:46

chevrolux: Spark are the best, and really issues only arise when customers have bundled products.

They already got bust in April of this year for the same thing: https://comcom.govt.nz/news-and-media/media-releases/2019/spark-fined-$675,000-for-misleading-consumers

Spark pleaded guilty and was convicted in relation to nine charges under the Fair Trading Act for conduct that occurred during the period 2 June 2014 to 7 December 2017.

Eight of the charges relate to misrepresentations Spark made in customer invoices. Spark’s terms and conditions said charges would stop 30 days after customers gave notice to terminate their contracts. However, final bills sent to nearly 72,000 customers included charges for services beyond the 30 day termination period.

chevrolux

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#2278220 17-Jul-2019 11:51

tyronne:

chevrolux: Spark are the best, and really issues only arise when customers have bundled products.

They already got bust in April of this year for the same thing: https://comcom.govt.nz/news-and-media/media-releases/2019/spark-fined-$675,000-for-misleading-consumers

Spark pleaded guilty and was convicted in relation to nine charges under the Fair Trading Act for conduct that occurred during the period 2 June 2014 to 7 December 2017.

Eight of the charges relate to misrepresentations Spark made in customer invoices. Spark’s terms and conditions said charges would stop 30 days after customers gave notice to terminate their contracts. However, final bills sent to nearly 72,000 customers included charges for services beyond the 30 day termination period.

Yep aware of that one. I guess there are probably more issues in the residential space. But I would also say the chance of a VF customer getting billed for ported services is in the 80% range, whereas Spark would be way down under 5%.