2023-10-21 16:17:00
(Ecofin Agency) – This type of measure aims to protect South African consumers according to the NCT and should deter other providers of electronic communications services from contravening the consumer protection law.
South Africa’s National Consumer Tribunal (NCT) has imposed an administrative fine of R1 million (approximately US$54,400) on Vodacom. The telecoms company is accused of having behaved in a “unreasonable» by preventing customers from terminating their fixed-term contracts between 2020 and 2022.
Customers claim Vodacom used intimidation tactics and imposed a termination penalty of up to 75% on them. Furthermore, the operator allegedly required customers to pay all due fees and the said penalty before the contracts were terminated upon request. This constitutes a violation of the South African Consumer Protection Act.
Thezi Mabuza, Acting National Consumer Commissioner, explained that most affected customers wanted to terminate their fixed-term contracts during the “peak of Covid-19» due to the loss of their jobs or the salary reductions they had suffered.
« The Commission [National Consumer Commission (NCC), Ndlr] welcomes this verdict, because we believe it will dissuade other suppliers and operators from adopting the same behavior. We also see this as a victory for South African consumers who, for a long time, have been subject to contracts favoring the supplier» said Ms Mabuza.
Isaac K. Kassouwi
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