Waikato Times

$132k error Internet users overcharge­d

- Debrin Foxcroft debrin.foxcroft@stuff.co.nz

Three telecommun­ications companies have been fined $121,500 for billing customers after their contracts had ended.

Flip Services, Orcon and CallPlus Services, trading as Slingshot, pleaded guilty to making false representa­tions in invoices they sent to customers.

The companies were charged with breaching the Fair Trading Act for invoices sent out between January 2, 2012 and March 1, 2018.

All three companies’ terms and conditions said charges for customers’ internet or landline services would stop one month after notice to terminate their contracts was given.

However, final invoices issued to nearly 6000 customers included charges for services beyond the one-month notice period. In doing so, the companies misreprese­nted their rights to payments because their customers only owed payment for the services provided prior to the agreed terminatio­n date.

Customers throughout the country overpaid around $132,000.

In sentencing in the Auckland District Court, Judge Kevin Glubb said it was the responsibi­lity of companies to implement checks and balances to ensure there were no misreprese­ntations in the terms and conditions of contracts.

‘‘It was not inadverten­t but nor was it deliberate. Rather, it was a failure to implement and then ensure proper processes were operating,’’ Glubb said. ‘‘This was highly careless.’’ Commerce Commission chairwoman Anna Rawlings said customers had the right to expect that businesses would invoice them accurately.

‘‘We expect businesses to have the processes in place to ensure that their invoices are accurate and compliant with what they tell their customers and with the Fair Trading Act,’’ she said.

‘‘In this case, each company failed to take necessary steps to ensure they were. As a result, they misled and overcharge­d thousands of customers.’’

While each company had internal instructio­ns for billing staff to manually adjust invoices, the instructio­ns were applied inconsiste­ntly, Rawlings said.

In the last year the commission has dealt with three telecommun­ications companies relating to the billing of customers after the end of their contracts.

‘‘We hope these conviction­s reiterate to all businesses that it is essential they ensure their billing systems are robust and they are making accurate representa­tions when they invoice their customers,’’ Rawlings said.

CallPlus Services, Flip Services and Orcon are each subsidiari­es of parent company Vocus (New Zealand) Holdings Limited.

In March Spark was fined $675,000 after pleading guilty to charges relating to misleading consumers in its customer invoicing. Vodafone was also fined $350,000 after pleading guilty to charges relating to false representa­tions in invoices.

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 ??  ?? CallPlus Services, Flip Services and Orcon are each subsidiari­es of parent company Vocus, a major supplier of mobile and broadband services.
CallPlus Services, Flip Services and Orcon are each subsidiari­es of parent company Vocus, a major supplier of mobile and broadband services.
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