Vodacom Pays The Price For Infringements of Consumer Protection Rights

In a significant victory for South African consumers, the nation's premier mobile network, Vodacom, has been fined R1 million by the National Consumer Commission (NCC). The punitive measure follows multiple complaints during the 2020/21 and 2021/22 financial years relating to alleged infringements on several provisions of the Consumer Protection Act.

According to NCC spokesperson, Phetho Ntaba, Vodacom restricted consumers from terminating their fixed-term contracts without incurring a cancellation penalty amounting to 75% of the contract's value. The telecom giant also demanded immediate clearance of outstanding fees, along with the imposition of the steep cancellation fee before releasing consumers from their contractual obligations.

Ntaba highlighted that consumers had been compelled to accept a quotation letter, valid for a period of 12 days, to proceed with cancellation procedures. This document, accompanied with proof of payment, had to be returned to Vodacom to effect the cancellation.

Following an in-depth review, the National Consumer Tribunal (NCT) condemned Vodacom's practices as 'unconscionable'. The Acting National Consumer Commissioner, Thezi Mabuza, confirmed that an investigation into Vodacom revealed a stark contravention of Section 14 of the Consumer Protection Act (CPA), specifically relating to Regulation 5.

In a distressing revelation, Mabuza stated that a substantial number of the complaints were logged during the peak of the COVID-19 pandemic when many consumers faced financial hardship as they lost their employment or faced salary reductions.