Home South African Vodacom handed R1 million fine after row over contract cancellations

Vodacom handed R1 million fine after row over contract cancellations

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The National Consumer Tribunal has slapped Vodacom with a R1 million administrative fine for contravening the Consumer Protection Act.

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THE NATIONAL Consumer Tribunal has slapped Vodacom with a R1 million administrative fine for contravening the Consumer Protection Act (CPA) as regards fixed-term contracts and their conduct was declared unconscionable and prohibited.

Consumers alleged that Vodacom denied them the right to cancel their fixed-term contracts by imposing a cancellation penalty of 75%.

Moreover, Vodacom required payment of all outstanding fees and the cancellation penalty before contracts were terminated on request.

The National Consumer Commission (NCC) said on Wednesday in a statement that it welcomed the decision by the Tribunal after it found that Vodacom’s conduct was unconscionable by imposing terms and conditions that negated the consumers’ right to cancel their fixed-term contracts.

Thezi Mabuza, the acting national consumer commissioner, said: “The Commission welcomes this judgment as we believe that it is going to deter other suppliers/operators from engaging in the same conduct. We further see this as a victory for South African consumers who for the longest period were subjected to contracts that were in favour of the supplier.”

This is a developing story.

“Business Report” is awaiting comment from Vodacom.

– BUSINESS REPORT

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