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.

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.

Tags: 8ta, Cell C, consumer protection act, cpa, Headline, Mamodupi Mohlala, MTN, Neotel, Telkom, Vodacom

Anonymous News Tip
Free Email Newsletter:
Subscribe
X

Anonymous News Tip






Captcha image
Not readable? Change text.

sending

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Do you think Cell C's out of bundle data price increase will hurt the company?

View Results

Loading ... Loading ...

More News

FB Newswire launched

Facebook

Facebook launched Thursday FB Newswire, billed as an online trove of real-time information for journalists and newsrooms

MTN’s “secret” fibre to the home pricing revealed

mtn fibre

MTN’s new fibre to the home prices may not be what people expect – which could be why the company tried to keep it a secret

The Internet a “CIA project”: Putin

big brother is watching

Russian President Vladimir Putin on Thursday called the Internet a “CIA project” and warned Russians against making Google searches

MTN 79c per minute prepaid call rate made permanent

MTN 79c

MTN has announced that its prepaid call rate of 79c per minute on its Pay Per Second price plan has been made permanent

bool(true)