Slingshot, Flip and Orcon charged

Telecommunications providers Slingshot, Flip Services and Orcon face 13 charges laid by the Commerce Commission for allegedly charging false bills to departing customers.

CallPlus Services Ltd (trading as Slingshot), Flip Services and Orcon, have been accused of making false representations in invoices they sent to their customers.

All three companies are owned by Vocus New Zealand, the third-largest broadband provider in New Zealand.

The charges were filed in the Auckland District Court under the Fair Trading Act.

They relate to conduct during the period January 2, 2012, to March 1, 2018.

The companies have been accused of issuing invoices that included charges to customers for the period after the agreed termination date for their contracts.

In doing so, the commission alleged, the companies misrepresented their rights to payments because their customers only owed payment for the services provided prior to the agreed termination date.

Vocus NZ chief executive Mark Callander said it was cooperating with the commission’s investigation.

Vocus had written to all customers affected, and had offered refunds and had apologised for the mistake, Callander said.

‘‘Unfortunately, over a sixyear period, a very small percentage of customers leaving Vocus’ residential ISPs who had given more than 30 days’ notice of termination may have been billed incorrectly on their final bill.

‘‘Vocus fixed this issue early 2018,’’ Callander said.

Last month, Vocus announced Australian energy company AGL Energy had come forward with an indicative bid at the lower price of A$4.85 (NZ$5.08) per share.

This would value Vocus at just in over A$3 billion.

This was just a week after a proposed A$3.3b takeover bid from Swedish private equity company EQT Infrastructure fell through.

EQT withdrew its conditional offer to buy Vocus at a price of A$5.25 per share after doing due diligence on the firm.

The Commerce Commission estimated Vocus NZ had about 13 per cent of the New Zealand fixed-line broadband market, by connections, last year.

The case will be called in the Auckland District Court on July 23.

‘‘Vocus fixed this issue in early 2018.’’ Vocus NZ chief executive Mark Callander