The National Consumer Commission’s Mamodupi Mohlala revealed that she has served the major cellphone operators in South Africa with compliance notices, after they refused to amend their current customer contracts, which would also explain their call rates.
“Mohlala served the companies with compliance notices on Wednesday after they refused to sign consent orders acknowledging their contracts did not comply with the Consumer Protection Act and undertaking to amend them,” Fin24 wrote.
MTN, Vodacom, Cell C and 8ta have been given until the end of September to acknowledge the amended contracts and agree to change their contracts’ terms and conditions. So far Neotel has been the only operator that has agreed to her demands.
According to News24, “the new contracts should give consumers the right to terminate contracts by giving 20 days’ notice; adequately explain pricing such as call rates; and remove the automatic renewal of contracts without consumers’ consent.”
If the companies refuse to sign the agreement after September, they could face sanctions of 10 percent of annual revenue, and will be reported to the National Consumer Tribunal.
Charlie Fripp – Consumer Tech editor