Fair Trading Act charges laid against Vodafone

Media Release

Issued 23 October 2009/ no 41

Fair Trading Act charges laid against Vodafone

The 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 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.

There will be no further comment as the matter is now before the courts.

Background

Fair Trading Act

Breaches of the Fair Trading Act may result in prosecution in court. Companies found guilty of breaching provisions of the Fair Trading Act may be fined up to $200,000 for each charge. Where more than one charge is laid, the court may impose a fine greater than $200,000. Only the courts can decide if a representation has breached the Fair Trading Act.

ENDS

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