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Labour calls for telco watchdog following fines

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Labour calls for telco watchdog

3News NZ

Vodafone's Auckland HQ

Vodafone's Auckland HQ

By 3 News online staff / NZN

New Zealand needs a telecommunications watchdog to make sure customers aren't duped, Labour says.

IT spokeswoman Clare Curran says companies are able to put money-making ahead of fair play, customer loyalty and service satisfaction.

"New Zealanders need an industry-level 'loud speaker' similar to the Australian Consumer Communications Action Network, where they can voice their concerns," she said.

"They need a way to verify claims being made about products, they need transparency and they need honesty from the companies they choose to support."

Vodafone New Zealand was on Monday fined $960,000 for misleading its customers in three advertising campaigns.

It was last year fined nearly $500,000 for six other Fair Trading Act charges.

Ms Current says Vodafone isn't alone - Telecom was recently hit with a $12 million penalty for using its market dominance to deter competitors.

"Labour's concern in the current environment - where companies are able to put money-making ahead of fair play, customer loyalty and service satisfaction - is that there isn't a group committed solely to consumer advocacy in this sector," she said.

Vodafone pleaded guilty in July to the charges brought by the Commerce Commission.

Nine of the charges relate to claims Vodafone made about the extent of its broadband network, made between October 2006 and April 2008.

Four charges related to the availability of a $10 prepay credit between May 2007 and September 2008.

 Other charges related to claims made about the company's 3G service between September 2008 and February 2009.

"In 2006 and 2008, there was a huge amount happening in the world of technology," says marketing director Greg Campbell.

"The mobile internet was emerging, mobile networks were speeding up and customers were really getting a handle on the benefits of being mobile. In our genuine attempts to communicate these benefits, we accept that we got some things wrong.

"We did not set out to mislead anyone and we apologise unreservedly. We accept that we didn’t communicate as clearly as we should have done with our customers and pleaded guilty to the FTA charges back in July."

NZN / 3 News

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Comments

11/09/2012 2:47:11 p.m.

Jim Seaview wrote:

QUOTE: "New Zealand needs a telecommunications watchdog to make sure customers aren't duped, Labour says. IT spokeswoman Clare Curran says companies are able to put money-making ahead of fair play, customer loyalty and service satisfaction. "New Zealanders need an industry-level 'loud speaker' similar to the Australian Consumer Communications Action Network, where they can voice their concerns," she said." NO MORE PLEASE: Labour wants to start another control agency to control Telecommunications that no one has asked for or needed. Vodafone have had two hefty fines, if they violate again they will get a heavier fine. Some time thay will learn not keep telling corporate lies diguised as marketing. Labour wants this NEW Consumer Agency for Telecommunications, a NEW Ministry of Childrens Affairs, are offering FREE food to ALL Decile 1 to 3 schools, will pay all school donations so that all students have a FREE education, impose a Capital Gains Tax, remove gst off Food, raise the age of pension eligibilty and raise the Minimum age to $15.00 per hour. Labours pre-election shopping basket of uncosted promises is getting bigger almost every week with a choice of more goodies. All paid for by the hard working, overtaxed, over rated, dilligent and struggling Tax Payer. No doubt Clare Curran will tell us how Labour is going to fund their pre-election promises.

11/09/2012 2:46:41 p.m.

Why isn’t the photo of Telecom’s head office? wrote:

Let me check my math here: Vodafone have 2 fines totaling $1.46 Million yet on one offence Telecom was fined $12 Million – if the fine is proportionate to the offence then doesn’t that make Telecom’s actions 16.44 times worse? Telecom’s fine divided by (Vodafone’s total of fines divided by number of fines). Why is the photo of Vodafone’s head office? Is it prettier?

11/09/2012 9:52:57 a.m.

Richard wrote:

Good old Labour - cotton wooling again. What about personal responsibility? Learn to read and then actually read what is in front of you before committing to ANY deal. The dumbing down continues.

11/09/2012 8:40:37 a.m.

Mike wrote:

We already have a watchdog for commerce with the commerce commission. Sure, we could do with justice being faster as some of this stuff goes back to 2005, so its taken too long.

We could do with a watchdog, but not for commerce, but for politicians. It would need some teeth so it should be able to charge for frivilous cries like above. Maybe we should call it the 'Cry Wolf' commission? We are always getting requests for inquiries and such from the opposition when something has already been addressed. If we had a commission that could charge politicians it would help clean up politics.

NZ does have a poor record internationally for copyright, hence dotcrim picked NZ as its record is so poor. While our law gives up to 5 years jail for distribution of copyright material, our police almost never enforce as they cry 'Civil' so dont investigate. We could probably do with a copyright commission to work much like the commerce commission, but to investigate copyright breaches. It might move NZ out of being the joke we currently are for copyright enforcement.

11/09/2012 7:25:00 a.m.

aiden wrote:

obviously not needed and waste of money as it is showing the telcos are getting fined and pulled up when they break the rules.