Vodafone will offer refunds to some pre-paid mobile telephone customers and provide full disclosure of contract conditions after an Australian Competition and Consumer Commission investigation.
This follows numerous complaints to the ACCC where Vodafone customers alleged they were misled about a cut in the expiry period for their FastFone pre-paid call credits. Previously credits ran for 365 days but from 3 September 2001 Vodafone cut this to between 40 days and 200 days, depending on the amount of FastFone call credits a customer bought.
"Companies must fully disclose terms and conditions and inform their customers of any material changes about their service supply", Acting ACCC Chairman, Mr Sitesh Bhojani, warned today.
Vodafone acknowledged that it did not inform all customers of the cut in the expiry period. Additionally, old advertising material at point-of-sale remained available after the change was introduced.
"The pre-paid segment of the Australian mobile phone market is increasingly popular and supplier-to-customer contact is minimal", Mr Bhojani said. "It is crucial that telecommunications companies which provide pre-paid services tell all customers of any changes appropriately".
Vodafone has subsequently re-introduced the 365-day call credit expiry period to the FastFone pre-paid service.
In a section 87B court-enforceable undertaking to the ACCC Vodafone has acknowledged that its conduct would be likely to breach the misleading conduct sections of the Trade Practices Act 1974.
Vodafone has agreed to:
- credit FastFone customers the number of call credits that were lost from their first activation between 3 September 2001 and 24 June 2002
- offer to supply any FastFone customer whose service has been de-activated with a new starter pack with appropriate call credits
- not misrepresent the expiry period of Vodafone FastFone pre-paid call credits for 12 months
- place corrective advertisements in the Australian newspaper
- review and report on its trade practices compliance program and internal policies.
Vodafone co-operated with the ACCC once the matter had been brought to its attention.