Network operators ordered to amend contracts

South Africa’s four primary cellular network operators and two fixed-line providers will have to implement new customer contracts to be in line with the Consumer Protection Act.

By - July 18, 2011
Man Signing Contract

South Africa’s four primary cellular network operators and two fixed-line providers will have new customer contracts that are compliant with the Consumer Protection Act in place within the next three months, according to Business Report on Monday.

This came as national consumer commissioner Mamodupi Mohlala prepared to sign consent order agreements this week with each of the companies. These agreements were legally binding and a fine of R1 million or 10 percent of annual turnover could be imposed if they were breached.

Mohlala said that over the past two weeks the commission had reviewed all contracts provided by the individual companies and none of the contracts were compliant with the act. This, despite the fact that it had been in the pipeline for the past five years and its implementation was postponed from September last year to April this year.

She said that in most cases about 75 percent of the cellphone contract terms and conditions would have to change.

Companies would have to change their billing systems, marketing approach and their staff would have to be educated and more skilled, which would require more spending on human resources, she said.

“There is nothing untoward… we are aligning South Africa with international best practice.”

Mohlala said Cell C, Telkom and 8.ta would have their contracts amended by the end of September, Neotel by next month and MTN and Vodacom both expected to have amended their contracts by the end of October.

Forum discussion

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Are you a DStv Premium subscriber?

View Results

Loading ... Loading ...

More News

This week’s awesome tech specials

Tech Sale

Here are this week’s best tech deals – just in time for payday weekend.

Neotel board reports possible bribery to police

Neotel

Neotel’s board has reported the payments to the police as possible bribery.

Neotel CEO on “special leave” due to alleged bribery scandal: report

Sunil Joshi Neotel

Neotel is currently embroiled in a scandal involving alleged bribery claims, according to the Mail & Guardian.

Windows 10 launch a mostly-successful mess

Windows 10 Error

The launch of Windows 10 is a mess, but there seem to be relatively few complaints about it.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
X