Telecom Mobile fined for 025 to 027 marketing campaign

, posted: 21-Jul-2006 15:34

TelecomThe Commerce Commerce said today, Friday July 21, that Telecom Mobile has copped a $45,000 fine with $3,000 costs ordered against it in the Wellington District Court.

Telecom Mobile was fined for breaching the Fair Trading Act sections 11 and 13(g) after it misled customers over a cellphone deal. This was the direct marketing campaign targetting 7,107 025 customers in March last year.

A letter was sent out by Telecom Mobile offering 025 customers account credits and discounts on mobile phones if they switched to 24 month plans on the 027 network. The letter was also sent out to some 027 customers whose contracts were close to the expiry date, and backed up by an advertising campaign

The Commerce Commission says the account credit varies from $50 to $250, depending on the type of plan the customers were on - business or personal ones.

Some customers never got the account credit though or the discounts on the mobile phones that had been promised. Telecom Mobile instructed call centre staff to honour customers' interpretation of the deal, according to the ComCom - but didn't pass on the information to customers changing plans online or via retail outlets.

The central billing system didn't get the info either so customers who forwarded accounts to be credited with the amount agreed didn't actually receive it.

It's quite interesting what Deborah Battell, the Commerce Commission's director of Fair Trading says:

In this case, consumers ended up switching to another Telecom network thinking they were getting a special deal. Not only were consumers misled about the offer but the competitors who advertised potentially competing offers with correct prices may also have been disadvantaged.

Tough for the competitors: I don't believe they have any come-back here.

Battell also notes that Telecom already has three convictions plus prior warnings and settlements on top of this new case. She says the Commission thinks Telecom has made significant improvements but still has a way to go before it can demonstrate that it has a strong culture of compliance with the FTA.

What the Commerce Commission doesn't say however is if the misled customers will receive the credits and phone discounts promised now. I hope so.

If you switched from 025 to 027 because of the Telecom Mobile marketing campaign and didn't get what was promised, you should contact Telecom now.

More information

Other related posts:
The problem with VDSL2, part 2
The problem with VDSL2
The mysterious Dynamic Line Management on VDSL2

comments powered by Disqus


Google News search
IT News
PC World New Zealand
Computerworld NZ
PC World and Computerworld Australia
PC World US
Computerworld US
NZ Herald
Virus Bulletin

Content copyright © Juha Saarinen. If you wish to use the content of my blog on your site, please contact me for details. I'm usually happy to share my material as long as it's not for spamblogs and content farms. Please attribute with a link back to this blog. If you wish to advertise on my blog, please drop me an email to discuss the details.
Comments policy All comments posted on this blog are the copyright and responsibility of the submitters in question. Comments commercial and promotional in nature are not allowed. Please ensure that your comments are on topic and refrain from making personal remarks.