Consumer commission versus giants

HE NATIONAL Consumer Commissioner is bracing for battle with corporate and government giants. Besides the string of major cases, commissioner Mamodupi Mohlala, has resolved 5 000 consumer complaints and put more than R10 million back into consumers’ pockets since her office opened on April 1 last year.

And this week allegations ranging from failure to provide refunds to the first case of unconscionable conduct are to come before the National Consumer Tribunal.

Upcoming cases are against the City of Joburg, MTN, Cell C, Vodacom, Telkom, DSTV, Top TV, BMW and Datcentre Motors. The City of Joburg case, to be heard this week,

Tis the first to combat the illegal practice of “unconscionable conduct” defined in the Consumer Protection Act (CPA). Mohlala said she had issued compliance notices to the city over its irregular billing; lack of meter readings; delays with rates clearance certificates and its switching off of consumers’ electricity.

City of Joburg spokesman Nthatisi Modingoane said the municipality had lodged objections to the compliance notices.

“All complaints relating to the compliance notices brought forward by the NCC have been addressed and resolved,” he said.

Modingoane said the commissioner raised “interesting and novel” legal issues and the city had embarked on a legal process to seek clarity.

Mohlala said the terms and conditions of cellphone contracts did allow for refunds for poor service; providers were automatically renewing contracts and the expiry of unused data bundles and voice minutes within three months of purchase contradict the act. These should expire after three years.

Mohlala said networks had not made provision for refunds within the minimum six-month warranty period and had only catered for repairs or replacements of defective cellphones and laptops.

Graham Mackinnon, Cell C’s Group General Counsel, said its contracts were CPA compliant and minor wording changes had solved the problems raised. “The only outstanding issue to be considered by the tribunal relates to the NCC’S interpretation of sections 14 and 63 of the CPA which relate to prepaid vouchers,” Mackinnon said.

Mohlala said Top TV and Dstv/multichoice were selling products as bouquets, which are considered “bundling”.

She said broadcasters needed to advise consumers that they did not have 100 percent signal coverage because some people had bought decoders for use in rural areas where service was unavailable.

However, Multichoice has disagreed with the commissioner’s interpretation of it contracts and would only “respond to any questions in this regard until the matter has been resolved at the Consumer Tribunal.

BMW and Datacentre Motors have cases pending after the motor vehicle companies refused to sign compliance notices.