One NZ ‘endangered vulnerable customers’, commission says
The Commerce Commission has filed proceedings in the High Court against One NZ, formerly Vodafone, for what it says are multiple breaches of the 111 Conduct Code.
It said some of the breaches were ongoing. Telecommunications commissioner Tristan Gilbertson said the code was put in place to ensure that vulnerable consumers could contact the 111 emergency service during a power cut at their home, even if they had moved from a copper landline connection to an alternative one.
While copper connections would work in a power cut, most other landline options require a power supply.
The code requires that providers give landline customers a means of calling 111 in a power cut, at no cost, and they must make sure customers are aware of this obligation.
Most providers had supplied vulnerable consumers with a mobile handset or a battery back-up for their landline service to satisfy this obligation.
“We need to send a strong signal that we won’t tolerate any disregard for its mandatory code obligations,” Gilbertson said. “The code recognises that some of these consumers are vulnerable because they are more likely to need to call 111 in a power cut for health, safety or disability reasons.”
Gilbertson said, given widespread compliance across the rest of the industry, One NZ’s failure to inform and protect its customers was a serious concern – particularly since it had the second largest number of landline connections in New Zealand.
“It’s critical that all telecommunications providers comply with the code to ensure the safety of their customers whose lives may be at risk in a power cut.
The onus is on them to ensure their customers know how they can protect themselves and where to go for further support.
“Just one breach could have devastating consequences – so it’s encouraging to see most other providers respecting the importance of the code and doing the right thing by their customers.”
One NZ said it was disappointed by the Commerce Commission’s move.
“We have fully cooperated with the commission since we became aware of its concerns and have been transparent throughout.
“We were open with the commission about where we had gaps, such as missing the deadline to contact some existing vulnerable customers within 12 months.
“We also missed ensuring that certain annual communications went to all landline customers about the 111 Code, however we continued to share the information via other channels including on our website, as part of the sales process, and in welcome emails,” it said,
“We remain committed to upholding the requirements of the code. We have cooperated throughout the process including acknowledging where we had gaps, which are now rectified.
“We have always complied with the key requirement to ensure all relevant customers have either a mobile phone or battery backup.
“We are not aware of any customers being impacted or harmed.
“Given our openness, cooperation, and commitment to achieving compliance, the commission’s decision to commence proceedings came as a surprise to us.”