Pretoria - The National Consumer Commission (NCC) has launched an investigation into two mobile network service providers regarding data and call tariff increases affecting cellular contract consumers.
“The NCC has after receiving all requested information and after assessing all complaints in respect of the provisions of the Consumer Protection Act and its regulations concluded that a reasonable basis exists to institute a full scale investigation,” it said on Thursday.
In April, the NCC learnt through media reports that certain mobile network service providers were proposing call and data increases to consumers. The proposed increases were reported to also affect consumers who were already in the midst of cellular contracts, and who had entered into fixed term agreements.
The NCC, subsequent to learning about the proposed increases, initiated an inquiry into the matter to establish the facts and merits of each complaint it received from consumers in this regard.
To date, the NCC has received 32 complaints from consumers who felt that the network service providers would be acting unfairly if they increased the tariffs of existing contract holders.
Of these complaints, 31 were against Vodacom while one was against Cell C with the majority of the complaints were lodged by consumers from the Gauteng province. This was followed by consumers from the Western Cape and KwaZulu-Natal.
As part of its initial inquiry, the NCC also requested certain information through the Independent Communications Authority of South Africa (ICASA) who has concurrent jurisdiction on this matter, and from MTN, Neotel, Vodacom, and Cell C.
In addition, the commission has also informed Vodacom and Cell C of the formal investigation and has requested their cooperation in the investigation.
“Further to this it has also requested the contract terms and conditions of all investigated parties,” said the NCC.
In 2012, the commission conducted a compliance audit into the contract terms and conditions of all network service providers to establish, guide and ensure their compliance with the provisions of the Consumer Protection Act (CPA).
In the 2014/2015 financial year, cellular phone related complaints ranked third highest amongst the complaints the NCC received, at a total of 946 complaints.
An analysis of these complaints indicate that 25% of these related to contract cancellation, followed by poor service delivery at 24% and defective handsets at 21%.
In terms of the CPA, before the expiry date of a fixed term of a consumer agreement, the supplier must notify the consumer in writing or any other recordable form, of the impending expiry date, including a notice of any material changes that would apply if the agreement is to be renewed or may otherwise continue beyond the expiry date.
“In addition, regulation 44(3) (h) of the CPA alludes to the fact that a contract term of a consumer agreement would be presumed unfair if it allows the supplier to increase an agreed price in a concluded agreement, without giving the consumer the right to terminate such an agreement,” said the commission.
The NCC aims to conclude its investigation within a 12 month period.