National Consumer Commission v Vodacom (Pty) Ltd (NCT/260497/2023/73(2)(b)) [2023] ZANCT 44 (13 October 2023)

National Consumer Commission v Vodacom (Pty) Ltd (NCT/260497/2023/73(2)(b)) [2023] ZANCT 44 (13 October 2023)

The Tribunal found that Vodacom's imposition of a 75% cancellation penalty on fixed-term SIM-only contracts was unreasonable and negated consumers' statutory right to cancel, contravening section 14(3)(b)(i) read with Regulation 5(2) and (3). Vodacom unlawfully delayed processing cancellation requests and continued to bill and threaten consumers after cancellation, in breach of sections 14(2)(b)(i)(bb), 14(2)(b) and (3), and 40(1)(b) and (d). Vodacom also failed to notify Bhengu of her contract expiry as required by section 14(2)(c), and marketed a data package to Majikijela that was not available, violating section 29(b)(i)(ii) and (v) read with section 41(3). The Tribunal rejected...

Citation
[2023] ZANCT 44
Parties
Applicant: National Consumer Commission; Respondent: Vodacom (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
13 October 2023
Case Number
NCT/260497/2023/73(2)(b)
Procedural Posture
Review Application / Final Judgment After Referral by Statutory Authority
Outcome
Vodacom was found to have contravened multiple provisions of the Consumer Protection Act and its conduct was declared prohibited. An administrative fine of R1,000,000 was imposed. No interdict or refund order was granted. No order as to costs.
Judges
S Hockey, M Peenze, A Potwana
Legal Topics
Consumer Protection Act, Fixed Term Contracts, Cancellation Penalties, Unconscionable Conduct, Marketing Misrepresentation, Administrative Fines
Commercial and Corporate Telecoms and Media Administrative Law Consumer Protection Act Fixed Term Contracts Cancellation Penalties Unconscionable Conduct Marketing Misrepresentation +1 more

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Parties

National Consumer Commission

Applicant

Vodacom (Pty) Ltd

Respondent

Procedural Posture

Review Application / Final Judgment After Referral by Statutory Authority

Legal Issues

  1. 1 Whether Vodacom's imposition of a 75% cancellation penalty on fixed-term contracts contravened the Consumer Protection Act and its regulations.
  2. 2 Whether Vodacom unlawfully delayed or refused to process contract cancellations upon consumer request.
  3. 3 Whether Vodacom engaged in unconscionable conduct by billing, blacklisting, or threatening consumers after cancellation requests.

Ratio Decidendi

The Tribunal found that Vodacom's imposition of a 75% cancellation penalty on fixed-term SIM-only contracts was unreasonable and negated consumers' statutory right to cancel, contravening section 14(3)(b)(i) read with Regulation 5(2) and (3). Vodacom unlawfully delayed processing cancellation requests and continued to bill and threaten consumers after cancellation, in breach of sections 14(2)(b)(i)(bb), 14(2)(b) and (3), and 40(1)(b) and (d). Vodacom also failed to notify Bhengu of her contract expiry as required by section 14(2)(c), and marketed a data package to Majikijela that was not available, violating section 29(b)(i)(ii) and (v) read with section 41(3). The Tribunal rejected...

Court Disposition

Vodacom was found to have contravened multiple provisions of the Consumer Protection Act and its conduct was declared prohibited. An administrative fine of R1,000,000 was imposed. No interdict or refund order was granted. No order as to costs.

Orders

  • It is declared that Vodacom contravened sections 14(3)(b)(i) read with regulation 5(2) and (3); 14(2)(b)(i)(bb); 14(2)(b) and (3); 14(2)(c); 40(1)(b) and (d); and 41(3) of the Consumer Protection Act.
  • The contraventions listed above are declared prohibited conduct.