Vodafone Faces Legal Action in New Zealand

­New Zealand's Commerce Commission has laid charges against Vodafone for alleged breaches of the Fair Trading Act 1986 in relation to various broadband and mobile phone promotions. The allegations cover a series of marketing promotions between October 2006 and February 2009.

Companies found guilty of breaching provisions of the Fair Trading Act may be fined up to $200,000 for each charge.

"It appears to relate to six advertising campaigns, each of which we addressed when raised by our customers or by the commission," Vodafone New Zealand said in an e-mailed statement. "We take these allegations seriously and have cooperated with the commission throughout."

The charges relate to various representations made by Vodafone regarding:

• The extent of the coverage of Vodafone's wireless broadband network, made in Vodafone's 'broadband everywhere' marketing campaign between October 2006 and April 2008;
• The availability of a $10 free airtime credit for those customers who registered their details on Vodafone's website between May 2007 and September 2008;
• The cost of using the Vodafone Live mobile internet service between February 2007 and August 2008;
• The cost of using Vodafone's $1 per day casual data charge for Vodafone's mobile internet service between July 2008 and November 2008;
• The size of Vodafone's mobile phone or 3G mobile phone network between September 2008 and February 2009; and
• The price of a Sony Ericsson W200 mobile phone between July and August 2007.

The Commerce Commission said that there will be no further comment as the matter is now before the courts.

Vodafone News Zealand ended June with just over 2.5 million customers, which the Mobile World analysts estimate is a market share of 54.5%. The main rival is Telecom, with new entrant 4Degrees having just started business.

On the web: Commerce Commission - Mobile World - Vodafone NZ

Posted to the site on 25th October 2009